VAULT E&S INSURANCE CO
Major Rating Factors:
Fair reserve development (4.5 on a scale of 0 to 10) as reserves have generally been sufficient to cover claims. Fair profitability index (3.1) with operating losses during 2019, 2020, 2021 and 2022. Average return on equity over the last five years has been poor at -6.0%.
Other Rating Factors:
Fair overall results on stability tests (3.5) including excessive premium growth, weak results on operational trends and negative cash flow from operations for 2022. The largest net exposure for one risk is high at 4.4% of capital. Good liquidity (6.7) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Strong long-term capitalization index (7.2) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels.
Stability Factors:
F - Negative cash flow.
G - Fast asset or premium growth.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Homeowners (89.4%), other (10.6%)
Licensed in:
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Principal Investments:
Investment grade bonds (75.1%), non investment grade bonds (8.6%), cash (2.4%), other (13.9%)