Major Rating Factors: A history of deficient reserves (0.8 on a scale of 0 to 10) that places pressure on both capital and profits. In four of the last five years reserves (two year development) were between 20% and 304242% deficient. Weak overall results on stability tests (1.9) including weak results on operational trends and negative cash flow from operations for 2021.
Other Rating Factors: Fair profitability index (3.9). Excellent expense controls. Return on equity has been fair, averaging 176.3% over the past five years. Good liquidity (5.9) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Strong long-term capitalization index (7.1) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels.
Stability Factors: D - Limited diversification of general business, policy, and/or investment risk. F - Negative cash flow. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Acc & health (100.0%)
Licensed in: DE, GA, IL, IN, KS, KY, MO, MT, NE, OK, OR, PA, SC, SD, TX, VA, WV
Principal Investments: Investment grade bonds (95.8%), non investment grade bonds (2.5%), cash (1.6%), other (0.2%)