Major Rating Factors:
Weak overall results on stability tests (2.5 on a scale of 0 to 10) including weak results on operational trends and lack of operational experience. The largest net exposure for one risk is conservative at 1.9% of capital. Fair reserve development (3.6) as reserves have generally been sufficient to cover claims.
Other Rating Factors:
Fair profitability index (3.3) with operating losses during 2021 and 2022. Good liquidity (6.9) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Strong long-term capitalization index (7.2) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels.
Stability Factors:
E - Lack of operating experience.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Comm multi (14.8%), fire (3.5%), product liab. (0.3%), other (81.4%)
Licensed in:
All states except PR
Principal Investments:
Common stock (57.5%), investment grade bonds (32.6%), cash (7.9%), non investment grade bonds (0.1%), other (1.9%)