Major Rating Factors: History of adequate reserve strength (5.9 on a scale of 0 to 10) as reserves have been consistently at an acceptable level. Good overall profitability index (5.3) despite operating losses during 2020. Return on equity has been fair, averaging 5.6% over the past five years.
Other Rating Factors: Good liquidity (5.8) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Good overall results on stability tests (5.1) despite weak results on operational trends. Strong long-term capitalization index (8.5) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels.
Stability Factors: T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Homeowners (75.4%), personal/comm auto (7.9%), comm multi (6.0%), farmowners (1.2%), work comp (1.1%), other (8.3%)
Licensed in: All states except PR
Principal Investments: Investment grade bonds (76.6%), common stock (22.2%), other (1.2%)