FIRE INS EXCHANGE
Major Rating Factors:
Fair long-term capitalization index (4.8 on a scale of 0 to 10) based on fair current risk adjusted capital (moderate loss scenario). Fair profitability index (3.8) with operating losses during 2020, 2021 and 2022.
Other Rating Factors:
Fair liquidity (4.3) as cash resources may not be adequate to cover a spike in claims. Fair overall results on stability tests (4.5) including weak results on operational trends, negative cash flow from operations for 2022 and fair risk adjusted capital in prior years. History of adequate reserve strength (6.0) as reserves have been consistently at an acceptable level.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
F - Negative cash flow.
L - Past results on our liquidity tests.
R - Concerns about the financial strength of its reinsurers.
Principal Lines of Business:
Homeowners (60.3%), comm multi (17.1%), fire (8.0%), personal/comm auto (3.5%), work comp (2.5%), other (8.7%)
Licensed in:
All states except AK, DC, DE, HI, KY, LA, ME, MA, MS, NC, RI, SC, VT, WV, PR
Principal Investments:
Common stock (57.1%), investment grade bonds (38.0%), real estate (2.2%), non investment grade bonds (1.6%), other (1.1%)