FEDERAL INS CO
Major Rating Factors:
Fair overall results on stability tests (3.1 on a scale of 0 to 10) including weak results on operational trends. The largest net exposure for one risk is excessive at 8.5% of capital. History of adequate reserve strength (6.5) as reserves have been consistently at an acceptable level.
Other Rating Factors:
Good overall profitability index (5.1). Good expense controls. Return on equity has been excellent over the last five years averaging 20.7%. Good liquidity (5.9) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. 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.
Stability Factors:
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Comm multi (16.2%), homeowners (9.8%), personal/comm auto (6.5%), work comp (6.0%), fin guar/surety (5.0%), product liab. (2.8%), fire (0.7%), other (53.0%)
Licensed in:
All states, the District of Columbia and Puerto Rico
Principal Investments:
Investment grade bonds (58.0%), non investment grade bonds (12.9%), common stock (10.4%), preferred stock (0.1%), other (18.6%)