D
HILLTOP SPECIALTY INSURANCE CO
Rating Date
December 2023
NAIC
Classification
Risk Adjusted
Capital Ratio #1
Risk Adjusted
Capital Ratio #2
Loss
Ratio
Total
Assets
Capital
Net
Premiums
Net
Income
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Major Rating Factors: Weak overall results on stability tests (2.5 on a scale of 0 to 10) including potential drain of affiliation with Fairfax Financial, weak results on operational trends and negative cash flow from operations for 2022. The largest net exposure for one risk is conservative at 1.2% of capital. Fair profitability index (3.0). Weak expense controls. Return on equity has been fair, averaging 7.9% over the past five years.
Other Rating Factors: Strong long-term capitalization index (10.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Ample reserve history (7.7) that can protect against increases in claims costs. Excellent liquidity (7.7) with ample operational cash flow and liquid investments.
Stability Factors: D - Limited diversification of general business, policy, and/or investment risk. F - Negative cash flow. R - Concerns about the financial strength of its reinsurers. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Comm multi (36.4%), personal/comm auto (0.8%), med mal (0.2%), other (62.5%)
Licensed in: All states, the District of Columbia and Puerto Rico
Principal Investments: Investment grade bonds (61.2%), cash (6.6%), common stock (3.8%), other (28.3%)
Ratios
Premium to Surplus
Reserve to Surplus
1-Year Reserve Development
2-Year Reserve Development
Expense Ratio
Combined Ratio
Cash From Underwriting
Net Premium Growth
Investments in Affiliates
Corporate Info
Group Affiliation
Fairfax Financial
Investment Rating
--
Company Address
100 WILLIAM STREET 5TH FLOOR
NEW YORK, NY 10038
Phone Number
(203) 977-6020
NAIC Number
37079
Largest Affiliates
C
STAMFORD, CT - P&C
C
WILMINGTON, DE - P&C
C
CONCORD, NH - P&C
C
WILMINGTON, DE - P&C
B
WILMINGTON, DE - P&C
Weiss Ratings