Major Rating Factors: Fair profitability index (3.6 on a scale of 0 to 10) with operating losses during 2020 and the first six months of 2022. Average return on equity over the last five years has been poor at -0.9%. Fair overall results on stability tests (3.5).
Other Rating Factors: Good liquidity (6.9) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Strong long-term capitalization index (7.3) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Ample reserve history (9.3) that helps to protect the company against sharp claims increases.
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: Work comp (100.0%)
Licensed in: AK, AZ, CA, CO, ID, NV, NM, OR, UT
Principal Investments: Investment grade bonds (75.3%), common stock (13.7%), cash (5.2%), non investment grade bonds (1.0%), other (4.8%)