Major Rating Factors:
History of adequate reserve strength (6.9 on a scale of 0 to 10) as reserves have been consistently at an acceptable level. Good liquidity (6.3) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Other Rating Factors:
Fair overall results on stability tests (4.9) including weak results on operational trends and excessive premium growth. Strong long-term capitalization index (7.9) based on excellent current risk adjusted capital (severe and moderate loss scenarios). Moreover, capital levels have been consistent in recent years. Excellent profitability (8.7) with operating gains in each of the last five years. Return on equity has been good over the last five years, averaging 11.1%.
Stability Factors:
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Other (100%)
Licensed in:
All states except PR
Principal Investments:
Investment grade bonds (90.0%), cash (3.2%), common stock (1.7%), non investment grade bonds (0.6%), other (4.5%)