Major Rating Factors: Fair reserve development (4.6 on a scale of 0 to 10) as reserves have generally been sufficient to cover claims. Fair profitability index (3.6) with operating losses during the first six months of 2022. Return on equity has been fair, averaging 7.6% over the past five years.
Other Rating Factors: Weak overall results on stability tests (2.5) including negative cash flow from operations for 2021. The largest net exposure for one risk is high at 4.5% 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 (10.0) 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. R - Concerns about the financial strength of its reinsurers. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Med mal (68.0%), product liab. (27.9%), other (4.1%)
Licensed in: All states except PR
Principal Investments: Investment grade bonds (94.2%), cash (1.5%), other (4.2%)