Major Rating Factors: Weak overall results on stability tests (1.4 on a scale of 0 to 10). The largest net exposure for one risk is excessive at 63.5% of capital. Strengths include potentially strong support from affiliation with CSAA Insurance Group.
Other Rating Factors: Good overall profitability index (5.9) despite operating losses during 2017. Return on equity has been low, averaging 3.4% over the past five years. Strong long-term capitalization index (10.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios). Moreover, capital levels have been consistent in recent years. Excellent liquidity (8.7) 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: Personal/comm auto (46.6%), fire (38.3%), homeowners (5.9%), other (9.1%)
Licensed in: AK, AZ, CA, CO, CT, DE, FL, ID, IN, KS, KY, MD, MT, NV, NY, OH, OK, OR, PA, SD, UT, WA, WV, WY
Principal Investments: Investment grade bonds (79.1%), common stock (0.2%), other (20.7%)