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 (0.3) that places pressure on both capital and profits. In four of the last five years, reserves (one year development) were between 292% and 16% deficient.
Other Rating Factors: Weak profitability index (0.3) with operating losses during 2016. Weak overall results on stability tests (0.0) including weak risk adjusted capital in prior years, weak results on operational trends, weak risk diversification and negative cash flow from operations for 2020. Excellent liquidity (7.1) 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 (72.9%), common stock (17.1%), cash (2.7%), preferred stock (1.3%), other (6.1%)