Major Rating Factors:
Poor long-term capitalization index (1.4 on a scale of 0 to 10) based on weak current risk adjusted capital (severe and moderate loss scenarios).
Other Rating Factors:
Vulnerable liquidity (1.0) as a spike in claims may stretch capacity. Fair profitability index (3.5) with operating losses during 2022. Fair overall results on stability tests (4.3) including weak risk adjusted capital in prior years, weak results on operational trends and lack of operational experience.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
E - Lack of operating experience.
L - Past results on our liquidity tests.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Homeowners (89.2%), fire (1.2%), other (9.6%)
Licensed in:
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Principal Investments:
Cash (78.5%), investment grade bonds (20.5%), other (1.0%)