Major Rating Factors:
Fair overall results on stability tests (3.7 on a scale of 0 to 10) including excessive premium growth and weak results on operational trends. Strengths include potentially strong support from affiliation with Genworth Financial. The largest net exposure for one risk is conservative at 1.6% of capital. Fair reserve development (4.8) as reserves have generally been sufficient to cover claims.
Other Rating Factors:
Weak profitability index (2.2). Good expense controls. Return on equity has been fair, averaging 20.3% over the past five years. Strong long-term capitalization index (10.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Excellent liquidity (8.3) with ample operational cash flow and liquid investments.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
G - Fast asset or premium growth.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Other (100%)
Licensed in:
All states except ME, NH, PR
Principal Investments:
Investment grade bonds (80.8%), cash (1.1%), other (18.1%)