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 2.0% over the past five years. Good overall results on stability tests (5.5) despite excessive premium growth. Strengths include potentially strong support from affiliation with American International Group Inc.
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. Excellent liquidity (7.0) with ample operational cash flow and liquid investments.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
G - Fast asset or premium growth.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Comm multi (41.2%), work comp (35.6%), personal/comm auto (8.8%), fire (1.0%), product liab. (0.7%), other (12.7%)
Licensed in:
All states
Principal Investments:
Investment grade bonds (98.1%), cash (0.9%), other (1.0%)
Corporate Info
Group Affiliation
American International Group Inc
Investment Rating
Company Address
500 West Madison Street
Chicago, IL 60661
Chicago, IL 60661
Phone Number
(212) 770-7000
NAIC Number
23809
Largest Affiliates