Major Rating Factors: Fair quality investment portfolio (3.1 on a scale of 0 to 10) with large holdings of BBB rated bonds in addition to significant exposure to junk bonds. Exposure to mortgages is significant, but the mortgage default rate has been low. Fair liquidity (3.7) as cash from operations and sale of marketable assets may not be adequate to cover a spike in claims or a run on policy withdrawals. Fair overall results on stability tests (3.1) including excessive premium growth and weak risk adjusted capital in prior years.
Other Rating Factors: Weak profitability (2.0) with operating losses during the first nine months of 2022. Good capitalization (5.1) based on good risk adjusted capital (moderate loss scenario).
Stability Factors: C - Past results on our Risk-Adjusted Capital tests. G - Fast asset or premium growth. I - Past results on our Investment Safety Index. L - Past results on our liquidity tests.
Principal Lines of Business: Group annuities (74.1%), ind annuities (25.8%)
Licensed in: All states except NY