Major Rating Factors:
Fair reserve development (3.6 on a scale of 0 to 10) as reserves have generally been sufficient to cover claims. Fair overall results on stability tests (4.4) including excessive premium growth. Strengths include potentially strong support from affiliation with Loews Corporation. Good profitability index (4.9) with operating gains in each of the last five years. Excellent expense controls. Return on equity has been low, averaging 1.9% over the past five years.
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.
Principal Lines of Business:
Fin guar/surety (76.0%), other (24.0%)
Licensed in:
All states except AZ, CT, HI, IL, MA, ME, NH
Principal Investments:
Investment grade bonds (88.8%), cash (10.9%), other (0.3%)
Corporate Info
Group Affiliation
Loews Corporation
Investment Rating
Company Address
151 North Franklin Street
Chicago, IL 60606
Chicago, IL 60606
Phone Number
(312) 822-5000
NAIC Number
13200
Website
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