Major Rating Factors: Fair overall results on stability tests (3.9 on a scale of 0 to 10) including potential drain of affiliation with Liberty Mutual Group. Fair reserve development (4.5) as reserves have generally been sufficient to cover claims.
Other Rating Factors: Good overall profitability index (5.8) despite operating losses during 2017 and the first six months of 2022. Return on equity has been low, averaging 4.1% over the past five years. Good liquidity (6.4) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Strong long-term capitalization index (7.8) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels.
Stability Factors: A - Financial problems or weaknesses of a parent or affiliate company. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Fire (42.3%), work comp (27.1%), personal/comm auto (2.0%), other (28.6%)
Licensed in: All states, the District of Columbia and Puerto Rico
Principal Investments: Investment grade bonds (67.3%), common stock (6.0%), non investment grade bonds (4.7%), other (22.1%)