Major Rating Factors:
History of adequate reserve strength (5.9 on a scale of 0 to 10) as reserves have been consistently at an acceptable level. Good liquidity (6.9) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Other Rating Factors:
Good overall results on stability tests (5.1) despite weak results on operational trends. Strong long-term capitalization index (8.1) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Excellent profitability (8.5) with operating gains in each of the last five years. Return on equity has been good over the last five years, averaging 12.8%.
Stability Factors:
A - Financial problems or weaknesses of a parent or affiliate company.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Comm multi (25.1%), personal/comm auto (19.7%), work comp (10.5%), fin guar/surety (8.2%), fire (6.0%), product liab. (3.3%), homeowners (0.3%), other (26.9%)
Licensed in:
All states, the District of Columbia and Puerto Rico
Principal Investments:
Investment grade bonds (35.5%), common stock (28.3%), non investment grade bonds (2.2%), real estate (1.5%), cash (0.4%), preferred stock (0.4%), other (31.8%)