Major Rating Factors:
Fair profitability index (4.2 on a scale of 0 to 10). Good expense controls. Return on equity has been low, averaging 1.3% over the past five years. Fair overall results on stability tests (3.8) including fair financial strength of affiliated Ally Financial Inc, weak results on operational trends and negative cash flow from operations for 2022.
Other Rating Factors:
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. Superior liquidity (9.7) with ample operational cash flow and liquid investments.
Stability Factors:
F - Negative cash flow.
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Other (100%)
Licensed in:
All states except PR
Principal Investments:
Investment grade bonds (70.8%), cash (29.2%)