C
Covernet Ins Co
Rating Date
October 2025
NAIC
Classification
Risk Adjusted
Capital Ratio #1
Risk Adjusted
Capital Ratio #2
Loss
Ratio
Total
Assets
Capital
Net
Premiums
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Major Rating Factors: Weak overall results on stability tests (2.1 on a scale of 0 to 10) including weak results on operational trends and weak risk diversification. Good overall profitability index (5.0) with small operating losses during 2020. Return on equity has been low, averaging 1.4% over the past five years. Strong long-term capitalization index (9.6) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels.
Other Rating Factors: Ample reserve history (7.0) that can protect against increases in claims costs. Excellent liquidity (8.0) with ample operational cash flow and liquid investments.
Stability Factors: D - Limited diversification of general business, policy, and/or investment risk. G - Fast asset or premium growth. R - Concerns about the financial strength of its reinsurers. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Comm multi (82.0%), fin guar/surety (11.6%), personal/comm auto (1.5%), fire (0.2%), other (4.7%)
Licensed in: PR
Principal Investments: Investment grade bonds (71.4%), cash (10.1%), common stock (4.3%), other (14.1%)
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2-Year Reserve Development
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Net Premium Growth
Investments in Affiliates
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Corporate Info
Group Affiliation
None
Investment Rating
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Company Address
Buchanan Office Center
Guaynabo, PR 00968
Phone Number
(787) 620-5000
NAIC Number
16991
Largest Affiliates
No affiliate information available.