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). A history of deficient reserves (0.2). Underreserving can have an adverse impact on capital and profits. In the last five years, reserves (two year development) fluctuated between 612% and 87% deficeint.
Other Rating Factors: Weak profitability index (1.9). Weak expense controls. Weak overall results on stability tests (0.1) including weak risk adjusted capital in prior years, weak results on operational trends and negative cash flow from operations for 2021. Excellent liquidity (7.6) with ample operational cash flow and liquid investments.
Stability Factors: C - Past results on our Risk-Adjusted Capital tests. 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: Med mal (100.0%)
Licensed in: NY
Principal Investments: Investment grade bonds (71.4%), common stock (12.4%), cash (2.9%), preferred stock (1.3%), other (12.1%)