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 over the last two years. Weak overall results on stability tests (0.0) including weak risk diversification, negative cash flow from operations for 2025 and excessive premium growth. The largest net exposure for one risk is excessive at 523.3% of capital. Fair reserve development (3.2) as the level of reserves has at times been insufficient to cover claims. In 2023 and 2025 the one year reserve development was 26.1% and 26.7% deficient respectively.
Other Rating Factors:
Fair profitability index (3.3) with operating losses during 2022 and 2023. Excellent liquidity (8.6) 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.
Principal Lines of Business:
Fin guar/surety (100.0%)
Licensed in:
IN, OH, UT, WV
Principal Investments:
Investment grade bonds (61.3%), common stock (31.4%), preferred stock (2.0%), cash (1.0%), other (4.4%)
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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