Major Rating Factors:
Good overall profitability index (5.8 on a scale of 0 to 10). Fair expense controls. Return on equity has been good over the last five years, averaging 13.7%. Good liquidity (6.8) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Other Rating Factors:
Good overall results on stability tests (5.0) despite weak results on operational trends. Strong long-term capitalization index (8.8) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Ample reserve history (8.3) that helps to protect the company against sharp claims increases.
Stability Factors:
A - Financial problems or weaknesses of a parent or affiliate company.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Work comp (64.0%), personal/comm auto (26.3%), homeowners (7.4%), product liab. (0.4%), comm multi (0.1%), other (1.8%)
Licensed in:
All states except AK, CA, FL, ID, IA, ME, MT, NH, NJ, ND, OH, SD, WI, WY, PR
Principal Investments:
Investment grade bonds (83.1%), preferred stock (0.4%), cash (0.4%), non investment grade bonds (0.3%), other (15.9%)