Major Rating Factors: Poor long-term capitalization index (0.0 on a scale of 0 to 10) based on weak current risk adjusted capital (severe and moderate loss scenarios). Weak profitability index (0.3) with operating losses during 2016.
Other Rating Factors: Weak overall results on stability tests (0.0) including weak risk adjusted capital in prior years, weak results on operational trends and negative cash flow from operations for 2020. Fair reserve development (3.2) as the level of reserves has at times been insufficient to cover claims. In 2018 and 2019 the one year reserve development was 21% and 38% deficient respectively. Excellent liquidity (7.0) 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: Med mal (98.7%), other (1.3%)
Licensed in: NY
Principal Investments: Investment grade bonds (65.5%), non investment grade bonds (8.2%), common stock (4.4%), cash (2.1%), other (19.8%)