STARSTONE NATIONAL INS CO
Major Rating Factors:
Weak overall results on stability tests (1.3 on a scale of 0 to 10) including weak risk adjusted capital in prior years, weak results on operational trends and excessive premium growth. Strengths include potentially strong support from affiliation with Enstar Group Ltd. Poor long-term capitalization index (0.4) based on weak current risk adjusted capital (severe and moderate loss scenarios).
Other Rating Factors:
Vulnerable liquidity (0.0) as a spike in claims may stretch capacity. Fair reserve development (4.7) as reserves have generally been sufficient to cover claims. Fair profitability index (4.2) with operating losses during 2018 and 2019. Average return on equity over the last five years has been poor at -3.0%.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
G - Fast asset or premium growth.
L - Past results on our liquidity tests.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Work comp (56.6%), personal/comm auto (2.7%), other (40.7%)
Licensed in:
All states except PR
Principal Investments:
Investment grade bonds (88.1%), cash (0.4%), other (11.5%)