Major Rating Factors:
Weak overall results on stability tests (1.5 on a scale of 0 to 10) including potential drain of affiliation with American Contractors Ins Group Ltd and weak results on operational trends.
Other Rating Factors:
Strong long-term capitalization index (9.1) based on excellent current risk adjusted capital (severe and moderate loss scenarios). Moreover, capital has steadily grown over the last five years. Excellent profitability (8.6) with operating gains in each of the last five years. Superior liquidity (10.0) with ample operational cash flow and liquid investments.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
G - Fast asset or premium growth.
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (23.0%), other (77.0%)
Licensed in:
All states except PR
Principal Investments:
Cash (52.6%), investment grade bonds (42.7%), other (4.7%)