Major Rating Factors: Strong long-term capitalization index (7.2 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 (7.8) that can protect against increases in claims costs.
Other Rating Factors: Excellent liquidity (7.6) with ample operational cash flow and liquid investments. Good overall profitability index (6.0). Weak expense controls. Good overall results on stability tests (6.5).
Stability Factors: T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Work comp (94.3%), personal/comm auto (3.6%), comm multi (2.1%)
Licensed in: AZ, CO, NV, NM, UT
Principal Investments: Investment grade bonds (49.1%), common stock (32.9%), cash (0.9%), real estate (0.7%), non investment grade bonds (0.4%), other (16.1%)