Major Rating Factors:
A history of deficient reserves (1.9 on a scale of 0 to 10) that places pressure on both capital and profits. Deficiencies in the two year reserve development occurred in three of the previous five years and ranged between 19.4% and 51.3%. Weak profitability index (1.7) with operating losses during each of the last five years. However, profits have turned positive in the first six months of 2025. Average return on equity over the last five years has been poor at -29.4%. Fair overall results on stability tests (3.9) including negative cash flow from operations for 2024 and fair risk adjusted capital in prior years. The largest net exposure for one risk is excessive at 7.8% of capital.
Other Rating Factors:
Good long-term capitalization index (6.0) based on good current risk adjusted capital (severe loss scenarios) reflecting some improvement over results in 2023. Superior liquidity (9.2) with ample operational cash flow and liquid investments.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
F - Negative cash flow.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Homeowners (56.0%), comm multi (44.1%)
Licensed in:
AR, AZ, CA, CO, DC, DE, GA, IA, KS, MD, MO, NE, NJ, NM, NV, OH, OK, OR, PA, SC, UT, VA, WA
Principal Investments:
Investment grade bonds (61.1%), common stock (21.2%), cash (4.4%), other (13.3%)
Corporate Info
Group Affiliation
Topa Equities Ltd
Investment Rating
--
Company Address
24025 Park Sorrento
Calabasas, CA 91302
Calabasas, CA 91302
Phone Number
(818) 466-5906
NAIC Number
18031
Website
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