Major Rating Factors: Fair reserve development (4.1 on a scale of 0 to 10) as reserves have generally been sufficient to cover claims. Fair overall results on stability tests (3.1). The largest net exposure for one risk is acceptable at 2.3% of capital.
Other Rating Factors: Good overall profitability index (6.0) despite operating losses during 2017. Return on equity has been low, averaging 4.8% over the past five years. Good liquidity (6.2) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Strong long-term capitalization index (7.7) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels.
Stability Factors: R - Concerns about the financial strength of its reinsurers. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Personal/comm auto (49.0%), homeowners (42.3%), fin guar/surety (1.9%), comm multi (1.0%), fire (0.9%), work comp (0.7%), other (4.3%)
Licensed in: All states except HI, PR
Principal Investments: Investment grade bonds (62.1%), non investment grade bonds (7.3%), common stock (5.3%), other (25.3%)