Major Rating Factors:
Fair overall results on stability tests (3.5 on a scale of 0 to 10) including potential drain of affiliation with Fairfax Financial and weak results on operational trends. Good liquidity (6.4) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Other Rating Factors:
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. Ample reserve history (8.0) that helps to protect the company against sharp claims increases. Excellent profitability (8.7) with operating gains in each of the last five years.
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 (8.6%), fin guar/surety (3.4%), comm multi (0.5%), med mal (0.3%), other (87.2%)
Licensed in:
All states, the District of Columbia and Puerto Rico
Principal Investments:
Investment grade bonds (45.9%), common stock (34.5%), preferred stock (5.1%), cash (3.4%), non investment grade bonds (1.2%), other (9.9%)