Major Rating Factors: Fair overall results on stability tests (4.5 on a scale of 0 to 10). 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.
Other Rating Factors: Ample reserve history (9.3) that helps to protect the company against sharp claims increases. Excellent profitability (7.1) with operating gains in each of the last five years. Return on equity has been good over the last five years, averaging 11.1%. Excellent liquidity (7.1) with ample operational cash flow and liquid investments.
Stability Factors: T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Work comp (68.9%), personal/comm auto (13.0%), comm multi (9.4%), other (8.8%)
Licensed in: AL, AK, AZ, CA, CO, FL, HI, ID, IL, IA, KS, LA, MN, MS, MO, MT, NV, NM, ND, OK, OR, SD, TX, UT, WA, WY
Principal Investments: Investment grade bonds (69.8%), common stock (11.9%), preferred stock (1.0%), cash (0.7%), real estate (0.3%), other (16.4%)