Major Rating Factors:
Fair reserve development (3.4 on a scale of 0 to 10) as reserves have generally been sufficient to cover claims. Fair overall results on stability tests (4.4) including excessive premium growth, weak results on operational trends, negative cash flow from operations for 2022 and lack of operational experience.
Other Rating Factors:
Strong long-term capitalization index (8.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Excellent liquidity (7.2) with ample operational cash flow and liquid investments. Weak profitability index (1.3) with operating losses during 2019, 2020, 2021 and 2022.
Stability Factors:
E - Lack of operating experience.
F - Negative cash flow.
G - Fast asset or premium growth.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Homeowners (79.4%), fire (2.4%), other (18.2%)
Licensed in:
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Principal Investments:
Cash (35.8%), investment grade bonds (30.2%), common stock (1.2%), other (32.8%)