Major Rating Factors: History of adequate reserve strength (5.0 on a scale of 0 to 10) as reserves have been consistently at an acceptable level. Good overall profitability index (6.8). Fair expense controls.
Other Rating Factors: Good liquidity (6.3) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Fair overall results on stability tests (4.6). Strong long-term capitalization index (9.8) 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: Homeowners (41.0%), personal/comm auto (21.8%), comm multi (13.4%), farmowners (9.4%), work comp (3.0%), product liab. (0.2%), other (11.2%)
Licensed in: All states except CA, DC, FL, HI, LA, MS, PR
Principal Investments: Investment grade bonds (61.8%), common stock (24.9%), non investment grade bonds (2.5%), preferred stock (0.6%), other (10.1%)