Major Rating Factors: Weak overall results on stability tests (0.9 on a scale of 0 to 10). The largest net exposure for one risk is excessive at 34.4% of capital. Strengths include potentially strong support from affiliation with Ally Financial Inc. Fair reserve development (4.7) as reserves have generally been sufficient to cover claims.
Other Rating Factors: Strong long-term capitalization index (10.0) 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 good over the last five years, averaging 14.0%. Excellent liquidity (7.9) with ample operational cash flow and liquid investments.
Stability Factors: 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 (68.5%), other (31.5%)
Licensed in: All states except PR
Principal Investments: Investment grade bonds (59.6%), cash (24.4%), common stock (15.6%), non investment grade bonds (0.3%), other (0.2%)