Major Rating Factors:
Fair reserve development (3.6 on a scale of 0 to 10) as reserves have generally been sufficient to cover claims. Good profitability index (4.9) with operating gains in each of the last five years. Excellent expense controls. Return on equity has been low, averaging 1.6% over the past five years. Good overall results on stability tests (5.6) despite excessive premium growth. Other stability subfactors include potentially strong support from affiliation with American International Group Inc, good operational trends and excellent risk diversification.
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. Excellent liquidity (7.0) with ample operational cash flow and liquid investments.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Work comp (133.0%), product liab. (0.2%)
Licensed in:
All states except AL, CA, MA, ME, MN, NJ, NY, VT
Principal Investments:
Investment grade bonds (98.9%), cash (0.5%), other (0.6%)
Corporate Info
Group Affiliation
American International Group Inc
Investment Rating
Company Address
500 West Madison Street
Chicago, IL 60661
Chicago, IL 60661
Phone Number
(212) 770-7000
NAIC Number
40258
Website
Largest Affiliates