Major Rating Factors:
Fair reserve development (4.7 on a scale of 0 to 10) as the level of reserves has at times been insufficient to cover claims. In 2020 and 2022 the one year reserve development was 24.1% and 30.5% deficient respectively. Fair profitability index (3.4) with operating losses during 2020, 2021, 2022, 2023 and the first six months of 2025. Average return on equity over the last five years has been poor at -10.8%. Fair overall results on stability tests (3.2) including excessive premium growth, weak results on operational trends and negative cash flow from operations for 2024.
Other Rating Factors:
Strong long-term capitalization index (10.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios) reflecting improvement over results in 2020. Superior liquidity (10.0) 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.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Reinsurance (100.0%)
Licensed in:
All states
Principal Investments:
Investment grade bonds (52.0%), cash (16.1%), other (31.9%)
Corporate Info
Group Affiliation
First American Financial Corporation
Investment Rating
Company Address
4 First American Way
Santa Ana, CA 92707
Santa Ana, CA 92707
Phone Number
(714) 250-3372
NAIC Number
37710
Website
Largest Affiliates