Major Rating Factors: Fair reserve development (4.9 on a scale of 0 to 10) as reserves have generally been sufficient to cover claims. Fair overall results on stability tests (3.4). The largest net exposure for one risk is high at 3.0% of capital.
Other Rating Factors: Good liquidity (6.8) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Strong long-term capitalization index (7.7) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Excellent profitability (7.0) with operating gains in each of the last five years.
Stability Factors: T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Personal/comm auto (75.2%), fin guar/surety (4.4%), other (20.4%)
Licensed in: All states except PR
Principal Investments: Common stock (74.3%), investment grade bonds (7.3%), preferred stock (0.6%), non investment grade bonds (0.2%), other (17.7%)