Major Rating Factors:
Fair reserve development (3.6 on a scale of 0 to 10) as reserves have generally been sufficient to cover claims. Good profitability index (4.9) with operating gains in each of the last five years. Excellent expense controls. Return on equity has been low, averaging 3.5% over the past five years. Good overall results on stability tests (6.1) despite excessive premium growth. Other stability subfactors include potentially strong support from affiliation with Loews Corporation, good operational trends and excellent risk diversification.
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. Good liquidity (6.9) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Stability Factors:
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Comm multi (42.5%), work comp (28.7%), personal/comm auto (21.4%), product liab. (1.3%), fire (0.1%), other (5.9%)
Licensed in:
All states except HI
Principal Investments:
Investment grade bonds (97.3%), cash (2.7%)
Corporate Info
Group Affiliation
Loews Corporation
Investment Rating
Company Address
151 North Franklin Street
Chicago, IL 60606
Chicago, IL 60606
Phone Number
(312) 822-5000
NAIC Number
20508
Website
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