Major Rating Factors:
Weak profitability index (2.2 on a scale of 0 to 10) with operating losses during 2019, 2020 and 2022. Average return on equity over the last five years has been poor at -2.2%. Weak overall results on stability tests (2.4) including weak results on operational trends and negative cash flow from operations for 2022.
Other Rating Factors:
History of adequate reserve strength (5.4) as reserves have been consistently at an acceptable level. 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. Superior liquidity (10.0) with ample operational cash flow and liquid investments.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Homeowners (56.9%), fire (22.7%), comm multi (8.9%), other (11.6%)
Licensed in:
PA
Principal Investments:
Investment grade bonds (51.8%), cash (21.1%), common stock (10.0%), preferred stock (0.9%), other (16.1%)