Major Rating Factors:
Poor long-term capitalization index (2.3 on a scale of 0 to 10) based on weak current risk adjusted capital (severe and moderate loss scenarios). A history of deficient reserves (2.3). Underreserving can have an adverse impact on capital and profits.
Other Rating Factors:
Weak profitability index (2.6) with operating losses during 2019, 2020 and 2021. Return on equity has been low, averaging 2.9% over the past five years. overall results on stability tests (-0.5) including weak results on operational trends, excessive premium growth and weak risk adjusted capital in prior years. The largest net exposure for one risk is excessive at 130.0% of capital. Good liquidity (6.6) 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.
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:
Fin guar/surety (100.0%)
Licensed in:
All states except TN
Principal Investments:
Investment grade bonds (57.6%), non investment grade bonds (15.7%), cash (0.6%), other (26.1%)
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
(414) 369-5033
NAIC Number
18708
Website
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