Major Rating Factors:
Weak overall results on stability tests (1.7 on a scale of 0 to 10) including weak results on operational trends. The largest net exposure for one risk is excessive at 16.4% of capital. Fair reserve development (4.6) as reserves have generally been sufficient to cover claims.
Other Rating Factors:
Good overall profitability index (6.5) despite operating losses during 2020. Return on equity has been fair, averaging 9.8% over the past five years. Strong long-term capitalization index (7.5) 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:
Personal/comm auto (27.5%), comm multi (25.9%), homeowners (6.5%), fire (4.6%), fin guar/surety (1.4%), work comp (0.1%), other (34.0%)
Licensed in:
No States
Principal Investments:
Investment grade bonds (87.2%), real estate (7.8%), cash (4.5%), common stock (0.4%)