Major Rating Factors: History of adequate reserve strength (5.5 on a scale of 0 to 10) as reserves have been consistently at an acceptable level. Fair overall results on stability tests (4.1).
Other Rating Factors: Strong long-term capitalization index (8.9) 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. Excellent expense controls. Excellent liquidity (7.7) 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 (97.3%), other (2.7%)
Licensed in: All states except PR
Principal Investments: Common stock (65.2%), investment grade bonds (27.5%), preferred stock (6.6%), real estate (0.3%), other (0.4%)