Major Rating Factors: Good overall profitability index (6.6 on a scale of 0 to 10). Fair expense controls. Good liquidity (6.1) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Other Rating Factors: Fair overall results on stability tests (4.1). Strong long-term capitalization index (8.5) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Ample reserve history (7.8) that can protect against increases in claims costs.
Stability Factors: T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Fire (42.7%), other (57.3%)
Licensed in: AL, MD, VA
Principal Investments: Investment grade bonds (44.5%), common stock (37.5%), non investment grade bonds (1.7%), cash (1.1%), real estate (0.5%), other (14.7%)