Major Rating Factors:
Weak overall results on stability tests (2.7 on a scale of 0 to 10) including potential drain of affiliation with IAT Reinsurance Co Ltd and weak results on operational trends. Fair reserve development (3.1) as reserves have generally been sufficient to cover claims. In 2019, the two year reserve development was 19% deficient.
Other Rating Factors:
Fair profitability index (4.0) with operating losses during 2018, 2019 and 2021. Return on equity has been low, averaging 0.5% over the past five years. Good overall long-term capitalization (6.3) based on good current risk adjusted capital (moderate loss scenario). However, capital levels have fluctuated somewhat during past years. Good liquidity (6.4) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
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:
Personal/comm auto (35.0%), homeowners (22.5%), comm multi (6.2%), fire (1.7%), product liab. (1.4%), other (33.2%)
Licensed in:
All states except AK, AR, CT, DC, IN, ME, MA, MI, NH, RI, VT, VA, WV, PR
Principal Investments:
Common stock (40.8%), investment grade bonds (34.9%), cash (11.2%), non investment grade bonds (10.3%), preferred stock (2.1%), other (0.6%)
Corporate Info
Group Affiliation
IAT Reinsurance Co Ltd
Investment Rating
--
Company Address
4200 Six Forks Road Suite 1400
RALEIGH, NC 27609
RALEIGH, NC 27609
Phone Number
(919) 831-8170
NAIC Number
13234
Website
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