Major Rating Factors: Weak profitability index (2.8 on a scale of 0 to 10). Fair expense controls. Return on equity has been fair, averaging 90.6% over the past five years. Weak overall results on stability tests (2.4).
Other Rating Factors: History of adequate reserve strength (6.5) as reserves have been consistently at an acceptable level. Strong long-term capitalization index (7.5) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Excellent liquidity (8.7) with ample operational cash flow and liquid investments.
Stability Factors: A - Financial problems or weaknesses of a parent or affiliate company. R - Concerns about the financial strength of its reinsurers. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Other (100%)
Licensed in: All states except PR
Principal Investments: Investment grade bonds (91.4%), non investment grade bonds (1.7%), common stock (1.7%), cash (0.4%), other (4.7%)