Major Rating Factors: History of adequate reserve strength (6.0 on a scale of 0 to 10) as reserves have been consistently at an acceptable level. Good liquidity (6.7) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Other Rating Factors: Fair overall results on stability tests (4.8). Strong long-term capitalization index (7.4) based on excellent current risk adjusted capital (severe and moderate loss scenarios). Moreover, capital levels have been consistent in recent years. Excellent profitability (8.4) with operating gains in each of the last five years.
Stability Factors: R - Concerns about the financial strength of its reinsurers. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Personal/comm auto (57.1%), homeowners (35.0%), fire (1.2%), other (6.7%)
Licensed in: All states, the District of Columbia and Puerto Rico
Principal Investments: Common stock (64.2%), investment grade bonds (24.5%), real estate (2.6%), non investment grade bonds (0.8%), other (7.8%)