Major Rating Factors: Fair profitability index (3.6 on a scale of 0 to 10). Good expense controls. Return on equity has been fair, averaging 10.0% over the past five years. Fair overall results on stability tests (3.1). The largest net exposure for one risk is acceptable at 2.2% of capital.
Other Rating Factors: Strong long-term capitalization index (8.1) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Ample reserve history (8.8) that helps to protect the company against sharp claims increases. Excellent liquidity (7.5) with ample operational cash flow and liquid investments.
Stability Factors: A - Financial problems or weaknesses of a parent or affiliate company. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Med mal (100.0%)
Licensed in: All states except PR
Principal Investments: Investment grade bonds (63.7%), real estate (6.7%), non investment grade bonds (5.0%), cash (2.6%), other (22.0%)