Major Rating Factors: Fair reserve development (3.3 on a scale of 0 to 10) as reserves have generally been sufficient to cover claims. In 2020, the two year reserve development was 22% deficient. Fair overall results on stability tests (3.4).
Other Rating Factors: Weak profitability index (1.8) with operating losses during 2019, 2020 and the first six months of 2022. Average return on equity over the last five years has been poor at -4.8%. Good long-term capitalization index (6.0) based on good current risk adjusted capital (severe and moderate loss scenarios), although results have slipped from the excellent range over the last two years. Good liquidity (6.7) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
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: Med mal (100.0%)
Licensed in: All states except NY, PR
Principal Investments: Investment grade bonds (79.5%), non investment grade bonds (7.3%), common stock (6.0%), cash (1.2%), preferred stock (0.2%), other (5.7%)