Major Rating Factors:
Fair overall results on stability tests (3.8 on a scale of 0 to 10) including weak results on operational trends and negative cash flow from operations for 2022. The largest net exposure for one risk is conservative at 1.0% of capital. Weak profitability index (2.6) with operating losses during 2021 and 2022. Return on equity has been low, averaging 4.9% over the past five years.
Other Rating Factors:
Good liquidity (6.4) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Strong long-term capitalization index (7.3) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Ample reserve history (7.5) that can protect against increases in claims costs.
Stability Factors:
F - Negative cash flow.
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Homeowners (63.0%), fire (23.1%), other (13.9%)
Licensed in:
All states except CA, CT, NV, NY, WA, WY, PR
Principal Investments:
Investment grade bonds (76.8%), cash (15.0%), common stock (6.7%), non investment grade bonds (0.4%), other (1.0%)