Major Rating Factors:
Poor long-term capitalization index (1.7 on a scale of 0 to 10) based on weak current risk adjusted capital (severe and moderate loss scenarios). Fair reserve development (4.0) as reserves have generally been sufficient to cover claims. Good overall profitability index (5.3) with small operating losses during 2023 and the first three months of 2025. Return on equity has been low, averaging 4.4% over the past five years.
Other Rating Factors:
Good overall results on stability tests (6.4) despite weak risk adjusted capital in prior years. Stability strengths include good operational trends and excellent risk diversification. Excellent liquidity (8.5) with ample operational cash flow and liquid investments.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Homeowners (92.0%), personal/comm auto (1.1%), other (6.9%)
Licensed in:
All states
Principal Investments:
Investment grade bonds (79.4%), non investment grade bonds (4.6%), common stock (1.9%), cash (0.6%), other (13.4%)
Corporate Info
Group Affiliation
Western Service Contract Corporation
Investment Rating
--
Company Address
5515 East La Palma Avenue
Anaheim, CA 92807
Anaheim, CA 92807
Phone Number
(800) 303-5000
NAIC Number
37850
Website
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