Major Rating Factors: Poor long-term capitalization index (0.7 on a scale of 0 to 10) 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. Weak overall results on stability tests (0.8) including weak risk adjusted capital in prior years and weak risk diversification. The largest net exposure for one risk is high at 3.2% of capital. Good overall profitability index (6.2). Excellent expense controls.
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: Personal/comm auto (100.0%)
Licensed in: TX
Principal Investments: Cash (4.6%), investment grade bonds (0.1%), other (95.2%)