Major Rating Factors:
Strong long-term capitalization index (8.7 on a scale of 0 to 10) based on excellent current risk adjusted capital (severe and moderate loss scenarios). Furthermore, this high level of risk adjusted capital has been consistently maintained in previous years. Ample reserve history (9.4) that helps to protect the company against sharp claims increases. Excellent liquidity (7.1) with ample operational cash flow and liquid investments.
Other Rating Factors:
Excellent overall results on stability tests (8.3). Stability strengths include excellent operational trends and excellent risk diversification. Good overall profitability index (6.9) with operating gains in each of the last five years. Return on equity has been low, averaging 4.7% over the past five years.
Stability Factors:
L - Past results on our liquidity tests.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Comm multi (38.5%), personal/comm auto (31.9%), work comp (12.0%), homeowners (1.6%), fire (0.3%), product liab. (0.1%), other (15.5%)
Licensed in:
All states except AK, AL, AR, FL, HI, LA, MS, MT
Principal Investments:
Investment grade bonds (56.7%), common stock (22.8%), cash (0.3%), other (20.2%)