Major Rating Factors:
A history of deficient reserves (1.3 on a scale of 0 to 10) that places pressure on both capital and profits. In four of the last five years reserves (two year development) were between 27.4% and 66.6% deficient. Weak profitability index (1.4) with operating losses during 2020, 2023 and the first nine months of 2024. Average return on equity over the last five years has been poor at -2.7%. Weak overall results on stability tests (0.0) including weak results on operational trends. The largest net exposure for one risk is excessive at 253.8% of capital.
Other Rating Factors:
Strong long-term capitalization index (7.1) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Excellent liquidity (7.9) 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:
Fin guar/surety (100.0%)
Licensed in:
All states and GU, PR, VI
Principal Investments:
Investment grade bonds (68.4%), non investment grade bonds (28.2%), cash (2.7%), other (0.7%)
Corporate Info
Group Affiliation
MBIA Inc
Investment Rating
Company Address
One Manhattanville Road
Purchase, NY 10577
Purchase, NY 10577
Phone Number
(914) 765-3333
NAIC Number
23825
Largest Affiliates