Major Rating Factors:
Poor long-term capitalization index (2.4 on a scale of 0 to 10) based on weak current risk adjusted capital (severe and moderate loss scenarios), although results have slipped from the fair range over the last two years. A history of deficient reserves (1.6). Underreserving can have an adverse impact on capital and profits. In 2020, the two year reserve development was 22% deficient.
Other Rating Factors:
Weak profitability index (1.7) with operating losses during 2019, 2020 and 2021. Average return on equity over the last five years has been poor at -3.3%. overall results on stability tests (-0.5) including excessive premium growth, negative cash flow from operations for 2021 and weak risk adjusted capital in prior years. The largest net exposure for one risk is excessive at 135.1% of capital. Good liquidity (6.0) 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.
F - Negative cash flow.
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Fin guar/surety (100.0%)
Licensed in:
All states except TN
Principal Investments:
Investment grade bonds (53.5%), non investment grade bonds (23.9%), cash (0.3%), other (22.3%)
Corporate Info
Group Affiliation
AMBAC Financial Group Inc
Investment Rating
Company Address
C/o Dewitt Ross & Stevens Sc 2
MADISON, WI 53703
MADISON, WI 53703
Phone Number
(212) 658-7470
NAIC Number
18708
Website
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