Major Rating Factors:
Weak overall results on stability tests (0.9) including weak results on operational trends and negative cash flow from operations for 2022.
Other Rating Factors:
Good overall profitability index (6.7). Excellent expense controls. Return on equity has been low, averaging 1.6% over the past five years. Good liquidity (6.9) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Strong long-term capitalization index (9.7) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (100.0%)
Licensed in:
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Principal Investments:
Investment grade bonds (97.1%), cash (2.4%), other (0.5%)