Major Rating Factors: Fair profitability index (4.8 on a scale of 0 to 10) with operating losses during 2016, 2017, 2018, 2019 and the first six months of 2021. Average return on equity over the last five years has been poor at -1.6%. Fair overall results on stability tests (3.1).
Other Rating Factors: Strong long-term capitalization index (10.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. 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. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Work comp (97.5%), personal/comm auto (1.3%), comm multi (1.1%)
Licensed in: AZ, CO, NV, NM, UT
Principal Investments: Investment grade bonds (96.3%), cash (1.3%), other (2.4%)