Major Rating Factors:
Weak overall results on stability tests (1.0 on a scale of 0 to 10) including negative cash flow from operations for 2021. The largest net exposure for one risk is excessive at 84.0% of capital. Strengths include potentially strong support from affiliation with MBIA Inc. A history of deficient reserves (2.6) that places pressure on both capital and profits. In 2020 and 2021 the two year reserve development was 27% and 34% deficient respectively.
Other Rating Factors:
Weak profitability index (2.2) with operating losses during 2017, 2018 and 2020. Average return on equity over the last five years has been poor at -2.2%. Strong long-term capitalization index (7.6) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Superior liquidity (9.9) with ample operational cash flow and liquid investments.
Stability Factors:
A - Financial problems or weaknesses of a parent or affiliate company.
F - Negative cash flow.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Reinsurance (100.0%)
Licensed in:
All states, the District of Columbia and Puerto Rico
Principal Investments:
Investment grade bonds (68.9%), non investment grade bonds (25.0%), cash (3.5%), other (2.7%)
Corporate Info
Group Affiliation
MBIA Inc
Investment Rating
Company Address
1 Manhattanville Road Suite 30
Purchase, NY 10577
Purchase, NY 10577
Phone Number
(914) 765-3333
NAIC Number
23825
Website
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