Major Rating Factors:
Weak overall results on stability tests (1.0 on a scale of 0 to 10) including weak results on operational trends. The largest net exposure for one risk is excessive at 91.7% of capital. Strengths include potentially strong support from affiliation with MBIA Inc. A history of deficient reserves (1.3) that places pressure on both capital and profits. Deficiencies in the two year reserve development occurred in three of the previous five years and ranged between 27% and 67%.
Other Rating Factors:
Weak profitability index (2.8) with operating losses during 2018 and 2020. Return on equity has been low, averaging 0.7% 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 (8.4) 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:
Reinsurance (100.0%)
Licensed in:
All states, the District of Columbia and Puerto Rico
Principal Investments:
Investment grade bonds (72.3%), non investment grade bonds (19.0%), cash (0.7%), other (7.9%)
Corporate Info
Group Affiliation
MBIA Inc
Investment Rating
Company Address
1 Manhattanville Road Suite 30
Purchase, NY 10577
Purchase, NY 10577
Phone Number
(914) 765-3333
NAIC Number
23825
Website
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