Major Rating Factors: History of adequate reserve strength (6.3 on a scale of 0 to 10) as reserves have been consistently at an acceptable level. Good overall profitability index (5.6) despite operating losses during the first six months of 2022. Return on equity has been good over the last five years, averaging 19.5%.
Other Rating Factors: Fair overall results on stability tests (4.6). Strong long-term capitalization index (7.9) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Vulnerable liquidity (2.6) as a spike in claims may stretch capacity.
Stability Factors: L - Past results on our liquidity tests. R - Concerns about the financial strength of its reinsurers. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Personal/comm auto (54.1%), homeowners (34.8%), comm multi (3.4%), other (7.7%)
Licensed in: All states except NJ
Principal Investments: Investment grade bonds (44.6%), non investment grade bonds (15.2%), common stock (13.9%), real estate (0.8%), preferred stock (0.3%), other (25.2%)