Major Rating Factors: Strong long-term capitalization index (7.8 on a scale of 0 to 10) based on excellent current risk adjusted capital (severe and moderate loss scenarios). Furthermore, this high level of risk adjusted capital has been consistently maintained in previous years. Superior liquidity (9.3) with ample operational cash flow and liquid investments.
Other Rating Factors: Good overall results on stability tests (6.6) despite negative cash flow from operations for 2021 and lack of operational experience. Fair profitability index (4.5) with operating losses during 2019. A history of deficient reserves (1.8). Underreserving can have an adverse impact on capital and profits. In 2020 and 2019 the two year reserve development was 42% and 51% deficient respectively.
Stability Factors: E - Lack of operating experience. F - Negative cash flow. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Reinsurance (100.0%)
Licensed in: MO, NY
Principal Investments: Investment grade bonds (98.9%), cash (1.1%)