Major Rating Factors:
Good liquidity (6.7 on a scale of 0 to 10) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Good overall results on stability tests (5.1) despite weak results on operational trends.
Other Rating Factors:
Strong long-term capitalization index (7.5) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Ample reserve history (8.7) that helps to protect the company against sharp claims increases. Excellent profitability (7.8) with operating gains in each of the last five years. Return on equity has been excellent over the last five years averaging 21.4%.
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:
Work comp (54.8%), personal/comm auto (27.5%), comm multi (4.0%), homeowners (3.7%), fin guar/surety (3.2%), product liab. (0.9%), other (5.9%)
Licensed in:
All states except PR
Principal Investments:
Investment grade bonds (57.2%), common stock (11.1%), non investment grade bonds (4.1%), preferred stock (0.4%), cash (0.2%), other (27.0%)