Major Rating Factors: Good overall results on stability tests (6.3 on a scale of 0 to 10) despite negative cash flow from operations for 2021. Strengths include good financial support from affiliation with Reservoir Capital Group LLC, excellent operational trends and good risk diversification. Fair liquidity (4.8) as cash from operations and sale of marketable assets may not be adequate to cover a spike in claims. Weak profitability (1.6) with operating losses during 2021.
Other Rating Factors: Strong capitalization (8.0) based on excellent risk adjusted capital (severe loss scenario). High quality investment portfolio (9.5).
Stability Factors: F - Negative cash flow. L - Past results on our liquidity tests. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Other (100%)
Licensed in: All states except AL, CA, CT, ME, MS, NJ, NY, RI, VT, WA, PR