Major Rating Factors: Good liquidity (6.7 on a scale of 0 to 10) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Fair overall results on stability tests (4.7) including excessive premium growth and lack of operational experience.
Other Rating Factors: 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. Weak profitability index (1.9) with operating losses during 2020 and the first six months of 2022.
Stability Factors: E - Lack of operating experience. G - Fast asset or premium growth. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Personal/comm auto (37.2%), homeowners (4.6%), fire (1.4%), other (56.8%)
Licensed in: All states except PR
Principal Investments: Common stock (61.7%), investment grade bonds (21.5%), cash (14.3%), other (2.5%)