B
Lone Star Alliance Inc a RRG
AustinTX
Rating Date
June 2025
NAIC
Classification
Risk Adjusted
Capital Ratio #1
Risk Adjusted
Capital Ratio #2
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Major Rating Factors: Good long-term capitalization index (5.1 on a scale of 0 to 10) based on good current risk adjusted capital (severe loss scenarios) reflecting some improvement over results in 2020. Good overall results on stability tests (5.1) despite fair risk adjusted capital in prior years. Stability strengths include good operational trends and good risk diversification. The largest net exposure for one risk is conservative at 1.3% of capital. History of adequate reserve strength (7.0) as reserves have been consistently at an acceptable level.
Other Rating Factors: Excellent profitability index (9.0) despite modest operating losses during the first three months of 2025. Return on equity has been excellent over the last five years averaging 21.9%. Vulnerable liquidity (2.3) as a spike in claims may stretch capacity.
Stability Factors: D - Limited diversification of general business, policy, and/or investment risk. L - Past results on our liquidity tests. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Med mal (88.8%), other (11.2%)
Licensed in: DC
Principal Investments: Investment grade bonds (11.2%), cash (4.6%), other (84.2%)
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Investments in Affiliates
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Corporate Info
Group Affiliation
Texas Medical Liability Trust
Investment Rating
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Company Address
Plaza V
Austin, TX 78746
Phone Number
(844) 595-8866
NAIC Number
15211
Largest Affiliates
B
Austin, TX - P&C
B
Austin, TX - P&C