Major Rating Factors:
Good long-term capitalization index (6.0 on a scale of 0 to 10) based on fair current risk adjusted capital (moderate loss scenarios), although results have slipped from the good range during the last year. Fair profitability index (4.5) with operating losses during 2023 and the first three months of 2025. Return on equity has been low, averaging 2.2% over the past five years. Good overall results on stability tests (6.4) despite fair risk adjusted capital in prior years. Stability strengths include good operational trends and excellent risk diversification. The largest net exposure for one risk is conservative at 1.4% of capital.
Other Rating Factors:
Ample reserve history (9.4) that helps to protect the company against sharp claims increases. Excellent liquidity (7.7) with ample operational cash flow and liquid investments.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Work comp (40.0%), homeowners (16.8%), personal/comm auto (6.7%), comm multi (6.5%), farmowners (0.9%), fin guar/surety (0.4%), other (28.7%)
Licensed in:
All states
Principal Investments:
Investment grade bonds (59.9%), common stock (33.2%), non investment grade bonds (0.9%), cash (0.3%), preferred stock (0.2%), other (5.6%)
Corporate Info
Group Affiliation
Ernest Rady Trust
Investment Rating
--
Company Address
15025 Innovation Drive
San Diego, CA 92128
San Diego, CA 92128
Phone Number
(858) 350-2400
NAIC Number
27847
Website
Largest Affiliates