Major Rating Factors: Fair profitability index (3.5 on a scale of 0 to 10). Fair expense controls. Return on equity has been low, averaging 3.8% over the past five years. Fair overall results on stability tests (3.3) including fair financial strength of affiliated CNA Financial Corp.
Other Rating Factors: 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 (9.3) with ample operational cash flow and liquid investments.
Stability Factors: A - Financial problems or weaknesses of a parent or affiliate company. R - Concerns about the financial strength of its reinsurers. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Comm multi (28.7%), work comp (21.2%), personal/comm auto (18.1%), product liab. (1.5%), fin guar/surety (1.1%), fire (0.1%), other (29.3%)
Licensed in: All states, the District of Columbia and Puerto Rico
Principal Investments: Investment grade bonds (99.2%), cash (0.8%)