Major Rating Factors: History of adequate reserve strength (6.3 on a scale of 0 to 10) as reserves have been consistently at an acceptable level. Good profitability index (5.0) despite operating losses during 2016.
Other Rating Factors: Good liquidity (6.7) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Fair overall results on stability tests (4.9). Strong long-term capitalization index (8.2) based on excellent current risk adjusted capital (severe and moderate loss scenarios). Moreover, capital levels have been consistent in recent years.
Stability Factors: T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Personal/comm auto (97.4%), acc & health (2.6%)
Licensed in: All states except PR
Principal Investments: Common stock (59.1%), investment grade bonds (31.9%), real estate (0.2%), preferred stock (0.1%), other (8.7%)