Major Rating Factors: History of adequate reserve strength (6.5 on a scale of 0 to 10) as reserves have been consistently at an acceptable level. Fair liquidity (4.9) as cash resources may not be adequate to cover a spike in claims.
Other Rating Factors: Fair overall results on stability tests (4.6). Strong long-term capitalization index (8.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Excellent profitability (8.3) with operating gains in each of the last five years. Return on equity has been excellent over the last five years averaging 19.0%.
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 (55.0%), homeowners (33.3%), comm multi (3.7%), other (8.1%)
Licensed in: All states except NJ
Principal Investments: Investment grade bonds (56.1%), common stock (16.2%), non investment grade bonds (12.6%), real estate (0.6%), preferred stock (0.2%), other (14.4%)