ALLIED WORLD SPECIALTY INS CO
Major Rating Factors:
History of adequate reserve strength (5.7 on a scale of 0 to 10) as reserves have been consistently at an acceptable level. Good profitability index (5.0) despite operating losses during 2018 and 2020. Average return on equity over the last five years has been poor at -1.4%.
Other Rating Factors:
Fair overall results on stability tests (4.8) including weak results on operational trends. Strong long-term capitalization index (7.1) based on excellent current risk adjusted capital (severe and moderate loss scenarios). Moreover, capital has steadily grown over the last five years. Excellent liquidity (7.0) with ample operational cash flow and liquid investments.
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:
Fire (10.7%), personal/comm auto (9.7%), comm multi (4.2%), med mal (0.3%), other (75.2%)
Licensed in:
All states, the District of Columbia and Puerto Rico
Principal Investments:
Investment grade bonds (55.7%), common stock (30.2%), non investment grade bonds (2.1%), cash (1.8%), other (10.2%)