Major Rating Factors: Fair overall results on stability tests (3.5 on a scale of 0 to 10) including fair financial strength of affiliated BRH Holdings GP Ltd and fair risk adjusted capital in prior years. Fair quality investment portfolio (4.1) with large holdings of BBB rated bonds in addition to junk bond exposure equal to 69% of capital. Exposure to mortgages is significant, but the mortgage default rate has been low. Fair liquidity (4.8).
Other Rating Factors: Good capitalization (5.6) based on good risk adjusted capital (severe loss scenario). Weak profitability (2.0) with investment income below regulatory standards in relation to interest assumptions of reserves.
Stability Factors: A - Financial problems or weaknesses of a parent or affiliate company. C - Past results on our Risk-Adjusted Capital tests. I - Past results on our Investment Safety Index. L - Past results on our liquidity tests.
Principal Lines of Business: Ind annuities (99.9%)
Licensed in: All states except NY