Major Rating Factors:
Fair overall results on stability tests (3.7 on a scale of 0 to 10) including excessive premium growth, weak results on operational trends and negative cash flow from operations for 2022. The largest net exposure for one risk is high at 3.5% of capital. History of adequate reserve strength (5.4) as reserves have been consistently at an acceptable level.
Other Rating Factors:
Good overall profitability index (5.8) with small operating losses during 2019. Return on equity has been fair, averaging 6.7% over the past five years. Strong long-term capitalization index (7.2) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Superior liquidity (10.0) with ample operational cash flow and liquid investments.
Stability Factors:
F - Negative cash flow.
G - Fast asset or premium growth.
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 (19.8%), comm multi (15.4%), work comp (11.6%), fire (1.6%), other (51.6%)
Licensed in:
All states except PR
Principal Investments:
Investment grade bonds (81.9%), cash (13.8%), non investment grade bonds (2.2%), common stock (0.4%), other (1.7%)