Major Rating Factors: Strong long-term capitalization index (10.0 on a scale of 0 to 10) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Excellent profitability (7.8) with operating gains in each of the last five years.
Other Rating Factors: Superior liquidity (9.1) with ample operational cash flow and liquid investments. Good overall results on stability tests (5.5). Strengths include potential support from affiliation with Cincinnati Financial Corp.
Stability Factors: T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Work comp (25.5%), personal/comm auto (25.0%), comm multi (20.9%), fire (3.4%), product liab. (1.5%), med mal (0.9%), other (22.7%)
Licensed in: All states except PR
Principal Investments: Investment grade bonds (60.9%), common stock (33.5%), cash (3.0%), non investment grade bonds (2.7%)