Major Rating Factors: Weak profitability index (2.5) with operating losses during 2017 and 2018. Average return on equity over the last five years has been poor at -3.5%.
Other Rating Factors: Weak overall results on stability tests (2.9). Good liquidity (6.6) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. 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.
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 (45.7%), homeowners (25.9%), fin guar/surety (11.1%), work comp (6.2%), comm multi (3.8%), fire (0.5%), other (6.7%)
Licensed in: All states except AK, CA, HI, PR
Principal Investments: Common stock (58.8%), investment grade bonds (36.9%), real estate (1.3%), other (3.0%)