Major Rating Factors:
Fair profitability index (3.5) with operating losses during 2022. Return on equity has been low, averaging 4.3% over the past five years.
Other Rating Factors:
Fair overall results on stability tests (4.7) including weak results on operational trends and negative cash flow from operations for 2022. 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. Vulnerable liquidity (2.2) as a spike in claims may stretch capacity.
Stability Factors:
F - Negative cash flow.
G - Fast asset or premium growth.
L - Past results on our liquidity tests.
R - Concerns about the financial strength of its reinsurers.
Principal Lines of Business:
Personal/comm auto (72.4%), homeowners (26.8%), other (0.8%)
Licensed in:
All states except PR
Principal Investments:
Investment grade bonds (89.3%), non investment grade bonds (3.6%), common stock (2.7%), cash (0.3%), other (4.1%)