Major Rating Factors: Fair overall results on stability tests (3.5 on a scale of 0 to 10). The largest net exposure for one risk is high at 3.0% of capital. Good long-term capitalization index (6.5) based on good current risk adjusted capital (moderate loss scenario), despite some fluctuation in capital levels.
Other Rating Factors: History of adequate reserve strength (5.6) as reserves have been consistently at an acceptable level. Good overall profitability index (5.2) despite operating losses during 2017 and the first six months of 2022. Return on equity has been low, averaging 3.3% over the past five years. Good liquidity (6.5) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Stability Factors: A - Financial problems or weaknesses of a parent or affiliate company. R - Concerns about the financial strength of its reinsurers. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Fin guar/surety (26.5%), personal/comm auto (12.1%), homeowners (4.5%), fire (1.9%), product liab. (1.6%), comm multi (1.2%), acc & health (0.5%), other (51.6%)
Licensed in: All states, the District of Columbia and Puerto Rico
Principal Investments: Common stock (37.4%), investment grade bonds (35.6%), non investment grade bonds (3.9%), cash (0.6%), real estate (0.3%), other (22.1%)