Major Rating Factors: Weak overall results on stability tests (0.9 on a scale of 0 to 10) including excessive premium growth and weak results on operational trends. The largest net exposure for one risk is excessive at 18.0% of capital. Fair reserve development (3.6) as reserves have generally been sufficient to cover claims.
Other Rating Factors: Good long-term capitalization index (5.6) based on good current risk adjusted capital (moderate loss scenario). Moreover, capital levels have been consistent over the last several years. Good liquidity (6.5) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Excellent profitability (8.5) despite modest operating losses during 2020.
Stability Factors: D - Limited diversification of general business, policy, and/or investment risk. G - Fast asset or premium growth. R - Concerns about the financial strength of its reinsurers. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Med mal (98.7%), other (1.3%)
Licensed in: CT, MA, MO, NH, NJ, NY
Principal Investments: Investment grade bonds (88.3%), cash (10.3%), other (1.4%)