Major Rating Factors: History of adequate reserve strength (5.7 on a scale of 0 to 10) as reserves have been consistently at an acceptable level. Good liquidity (5.8) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Other Rating Factors: Fair profitability index (4.1). Fair expense controls. Return on equity has been fair, averaging 14.0% over the past five years. Fair overall results on stability tests (4.1) including negative cash flow from operations for 2021. The largest net exposure for one risk is conservative at 1.1% of capital. Strong long-term capitalization index (8.1) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels.
Stability Factors: F - Negative cash flow. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Personal/comm auto (45.2%), homeowners (43.8%), acc & health (5.0%), fire (0.3%), other (5.7%)
Licensed in: All states except AK, CA, PR
Principal Investments: Investment grade bonds (67.4%), common stock (18.5%), non investment grade bonds (5.3%), preferred stock (0.7%), other (8.0%)