Major Rating Factors:
Weak overall results on stability tests (2.3 on a scale of 0 to 10) including weak results on operational trends. The largest net exposure for one risk is conservative at 1.5% of capital. History of adequate reserve strength (6.2) as reserves have been consistently at an acceptable level.
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 (7.5) with operating gains in each of the last five years. Excellent liquidity (8.8) with ample operational cash flow and liquid investments.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Other (100%)
Licensed in:
All states except PR
Principal Investments:
Investment grade bonds (75.5%), cash (7.9%), real estate (0.6%), other (16.0%)