Major Rating Factors:
Good profitability index (4.9 on a scale of 0 to 10) with operating gains in each of the last five years. Excellent expense controls. Return on equity has been low, averaging 2.9% over the past five years. Good overall results on stability tests (6.6) despite excessive premium growth. Other stability subfactors include potentially strong support from affiliation with Cincinnati Financial Corporation, good operational trends and excellent risk diversification. Fair reserve development (3.6) as reserves have generally been sufficient to cover claims.
Other Rating Factors:
Strong long-term capitalization index (10.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Superior liquidity (9.1) with ample operational cash flow and liquid investments.
Stability Factors:
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Homeowners (28.6%), personal/comm auto (27.6%), comm multi (17.2%), work comp (8.0%), product liab. (1.2%), fin guar/surety (0.6%), fire (0.6%), med mal (0.2%), other (15.9%)
Licensed in:
All states
Principal Investments:
Investment grade bonds (66.7%), common stock (31.6%), cash (1.0%), non investment grade bonds (0.7%)
Corporate Info
Group Affiliation
Cincinnati Financial Corporation
Investment Rating
Company Address
6200 South Gilmore Road
Fairfield, OH 45014
Fairfield, OH 45014
Phone Number
(513) 870-2000
NAIC Number
28665
Website
Largest Affiliates
