Major Rating Factors: Good overall profitability index (5.3 on a scale of 0 to 10). Fair expense controls. Return on equity has been good over the last five years, averaging 10.9%. Good liquidity (6.9) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Other Rating Factors: Fair overall results on stability tests (4.1). 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. Ample reserve history (9.3) that helps to protect the company against sharp claims increases.
Stability Factors: T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Work comp (63.9%), personal/comm auto (15.2%), comm multi (10.9%), other (10.1%)
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 (67.0%), common stock (15.9%), cash (4.3%), real estate (0.2%), other (12.6%)