Major Rating Factors:
A history of deficient reserves (1.4 on a scale of 0 to 10) that places pressure on both capital and profits. In the last five years, reserves (two year development) fluctuated between 24.7% and 66.6% deficient. Weak profitability index (1.0) with operating losses during 2020, 2023 and 2024. Average return on equity over the last five years has been poor at -7.5%. Weak overall results on stability tests (0.0) including weak results on operational trends and negative cash flow from operations for 2024. The largest net exposure for one risk is excessive at 274.8% of capital.
Other Rating Factors:
Good long-term capitalization index (6.8) based on good current risk adjusted capital (severe loss scenarios), although results have slipped from the excellent range during the last year. Superior liquidity (10.0) with ample operational cash flow and liquid investments.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Fin guar/surety (100.0%)
Licensed in:
All states and GU, PR, VI
Principal Investments:
Investment grade bonds (63.7%), non investment grade bonds (31.1%), cash (2.3%), common stock (0.8%), other (2.2%)
Corporate Info
Group Affiliation
MBIA Inc
Investment Rating
Company Address
One Manhattanville Road
Purchase, NY 10577
Purchase, NY 10577
Phone Number
(914) 765-3333
NAIC Number
23825
Largest Affiliates