Major Rating Factors:
Fair reserve development (3.4 on a scale of 0 to 10) as reserves have generally been sufficient to cover claims. In 2019, the two year reserve development was 23% deficient. Fair profitability index (3.9) with operating losses during 2021. Return on equity has been fair, averaging 6.3% over the past five years.
Other Rating Factors:
Fair overall results on stability tests (4.5) including weak results on operational trends. Good long-term capitalization index (6.6) based on good current risk adjusted capital (moderate loss scenario). Excellent liquidity (7.0) with ample operational cash flow and liquid investments.
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 (57.1%), work comp (4.5%), fire (2.2%), comm multi (0.6%), homeowners (0.6%), other (34.9%)
Licensed in:
All states except PR
Principal Investments:
Investment grade bonds (41.9%), common stock (40.8%), cash (10.6%), non investment grade bonds (4.5%), preferred stock (1.2%), other (1.0%)