Major Rating Factors:
Weak overall results on stability tests (2.4 on a scale of 0 to 10) including weak results on operational trends. The largest net exposure for one risk is excessive at 9.5% of capital. Good overall profitability index (5.9). Weak expense controls. Return on equity has been low, averaging 2.3% over the past five years.
Other Rating Factors:
Strong long-term capitalization index (10.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Ample reserve history (9.1) that helps to protect the company against sharp claims increases. Superior liquidity (9.2) 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:
Other (100%)
Licensed in:
All states except AK, AZ, CA, CT, LA, MA, MS, MT, NE, NM, NY, RI, SD, VT, VA, WV, WI, WY, PR
Principal Investments:
Investment grade bonds (74.1%), common stock (9.3%), cash (6.2%), other (10.3%)