Major Rating Factors:
History of adequate reserve strength (6.0 on a scale of 0 to 10) as reserves have been consistently at an acceptable level. Good overall profitability index (6.9) despite operating losses during 2022.
Other Rating Factors:
Good liquidity (6.8) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Good overall results on stability tests (5.1) despite weak results on operational trends. Strong long-term capitalization index (8.6) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels.
Stability Factors:
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (44.3%), homeowners (30.8%), comm multi (7.9%), fire (6.6%), work comp (2.1%), farmowners (0.7%), fin guar/surety (0.2%), other (7.5%)
Licensed in:
All states except AK, CA, CT, DC, DE, HI, LA, ME, MD, MA, MT, NH, NJ, NY, OK, RI, TX, VT, WV, WY, PR
Principal Investments:
Investment grade bonds (49.9%), common stock (40.5%), real estate (1.1%), non investment grade bonds (0.6%), preferred stock (0.4%), other (7.4%)