EDISON INS CO
Major Rating Factors:
Poor long-term capitalization (2.8 on a scale of 0 to 10) based on fair current risk adjusted capital (moderate loss scenario), although results have slipped from the good range over the last two years. Weak profitability index (2.9) with operating losses during 2018, 2019 and 2020. Average return on equity over the last five years has been poor at -10.8%.
Other Rating Factors:
Weak overall results on stability tests (2.4) including excessive premium growth and weak results on operational trends. Ample reserve history (7.0) that can protect against increases in claims costs. Excellent liquidity (7.3) with ample operational cash flow and liquid investments.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
G - Fast asset or premium growth.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Homeowners (99.6%), other (0.4%)
Licensed in:
FL, NJ
Principal Investments:
Investment grade bonds (53.2%), cash (43.6%), other (3.2%)