Major Rating Factors: Good overall results on stability tests (5.0 on a scale of 0 to 10). Strengths include potentially strong support from affiliation with Alfa Ins Group. Good overall profitability index (6.6). Fair expense controls. Return on equity has been low, averaging 1.5% over the past five years.
Other Rating Factors: Good liquidity (6.9) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Strong long-term capitalization index (9.9) based on excellent current risk adjusted capital (severe and moderate loss scenarios). Moreover, capital levels have been consistent in recent years. Ample reserve history (7.7) that can protect against increases in claims costs.
Stability Factors: T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: --
Licensed in: GA, MD, SC, TN, VA
Principal Investments: Investment grade bonds (53.1%), common stock (16.3%), cash (1.9%), non investment grade bonds (1.1%), other (27.7%)