Major Rating Factors:
Fair reserve development (4.3 on a scale of 0 to 10) as reserves have generally been sufficient to cover claims. In 2022, the two year reserve development was 22% deficient. Fair profitability index (4.6) with operating losses during 2018 and 2020. Average return on equity over the last five years has been poor at -0.2%.
Other Rating Factors:
Fair overall results on stability tests (4.2) including weak results on operational trends. The largest net exposure for one risk is conservative at 1.2% of capital. Good overall long-term capitalization (5.2) based on good current risk adjusted capital (severe and moderate loss scenarios). However, capital levels have fluctuated somewhat during past years. Good liquidity (6.4) 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:
Personal/comm auto (50.0%), work comp (16.4%), fire (0.7%), other (32.9%)
Licensed in:
All states except PR
Principal Investments:
Common stock (57.6%), investment grade bonds (27.5%), cash (1.8%), non investment grade bonds (0.6%), other (12.4%)
Corporate Info
Group Affiliation
Houston International Ins Group Ltd
Investment Rating
--
Company Address
800 Gessner Suite 600
Houston, TX 77024
Houston, TX 77024
Phone Number
(713) 935-4800
NAIC Number
35408
Website
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