Major Rating Factors: Strong long-term capitalization index (8.6 on a scale of 0 to 10) based on excellent current risk adjusted capital (severe and moderate loss scenarios). Moreover, capital levels have been consistent in recent years. Excellent liquidity (7.0) with ample operational cash flow and liquid investments.
Other Rating Factors: Good overall results on stability tests (5.5) despite excessive premium growth and lack of operational experience. Fair profitability index (3.5) with operating losses during the first six months of 2022.
Stability Factors: D - Limited diversification of general business, policy, and/or investment risk. E - Lack of operating experience. G - Fast asset or premium growth. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Personal/comm auto (96.4%), other (3.6%)
Licensed in: All states, the District of Columbia and Puerto Rico
Principal Investments: Common stock (50.4%), investment grade bonds (43.0%), cash (0.8%), other (5.8%)