Major Rating Factors: Poor long-term capitalization index (2.1 on a scale of 0 to 10) based on weak current risk adjusted capital (moderate loss scenario). Weak overall results on stability tests (2.0) including weak risk adjusted capital in prior years. The largest net exposure for one risk is high at 3.0% of capital.
Other Rating Factors: History of adequate reserve strength (5.8) as reserves have been consistently at an acceptable level. Good liquidity (6.6) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Excellent profitability (7.1) despite modest operating losses during 2021.
Stability Factors: C - Past results on our Risk-Adjusted Capital tests. R - Concerns about the financial strength of its reinsurers. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Work comp (82.6%), comm multi (16.4%), other (1.1%)
Licensed in: All states except PR
Principal Investments: Investment grade bonds (61.9%), common stock (28.3%), cash (6.7%), preferred stock (3.0%), other (0.2%)