First Surety Corp
Major Rating Factors:
Poor long-term capitalization index (2.8 on a scale of 0 to 10) based on weak current risk adjusted capital (severe loss scenarios), although results have slipped from the fair range during the last year. Weak profitability index (2.3) with operating losses during 2020, 2022 and 2023. Average return on equity over the last five years has been poor at -4.3%. Weak overall results on stability tests (0.0) including weak results on operational trends, weak risk diversification and negative cash flow from operations for 2024. The largest net exposure for one risk is excessive at 545.1% of capital.
Other Rating Factors:
Fair reserve development (3.7) as the level of reserves has at times been insufficient to cover claims. In 2021 and 2024 the two year reserve development was 16.4% and 33.0% deficient respectively. Excellent liquidity (8.9) with ample operational cash flow and liquid investments.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
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:
Fin guar/surety (100.0%)
Licensed in:
IN, OH, UT, WV
Principal Investments:
Investment grade bonds (59.8%), common stock (26.2%), preferred stock (1.4%), cash (1.3%), other (11.3%)
Corporate Info
Group Affiliation
None
Investment Rating
--
Company Address
179 Summers Street
Charleston, WV 25301
Charleston, WV 25301
Phone Number
(304) 720-1985
NAIC Number
38504
Website
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Largest Affiliates
No affiliate information available.