Major Rating Factors: History of adequate reserve strength (5.4 on a scale of 0 to 10) as reserves have been consistently at an acceptable level. Good liquidity (6.6) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Other Rating Factors: Fair profitability index (3.8) with operating losses during 2017, 2020 and the first six months of 2022. Return on equity has been low, averaging 1.8% over the past five years. Fair overall results on stability tests (4.1). Strong long-term capitalization index (7.7) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels.
Stability Factors: A - Financial problems or weaknesses of a parent or affiliate company. R - Concerns about the financial strength of its reinsurers. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Acc & health (8.5%), personal/comm auto (8.1%), comm multi (2.4%), fire (0.5%), product liab. (0.4%), homeowners (0.3%), fin guar/surety (0.1%), other (79.7%)
Licensed in: All states except PR
Principal Investments: Investment grade bonds (69.3%), common stock (12.1%), other (18.6%)