Major Rating Factors:
Poor long-term capitalization index (2.9 on a scale of 0 to 10) based on weak current risk adjusted capital (severe loss scenarios), although results have slipped from the fair range during the last year. Fair overall results on stability tests (4.7) including lack of operational experience, excessive premium growth and fair risk adjusted capital in prior years. The largest net exposure for one risk is conservative at 1.5% of capital. History of adequate reserve strength (6.8) as reserves have been consistently at an acceptable level.
Other Rating Factors:
Good overall profitability index (6.7) despite operating losses during 2021 and 2022. Good liquidity (6.7) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
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:
Product liab. (1.9%), other (98.1%)
Licensed in:
(No states)
Principal Investments:
Investment grade bonds (92.7%), cash (2.2%), other (5.1%)
Corporate Info
Group Affiliation
None
Investment Rating
--
Company Address
5050 Quorum Drive
Dallas, TX 75254
Dallas, TX 75254
Phone Number
(888) 344-7100
NAIC Number
16988
Website
Largest Affiliates
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