COLONY INS CO
Major Rating Factors:
Fair overall results on stability tests (3.3 on a scale of 0 to 10) including potential drain of affiliation with Argo Group Intl Holdings Ltd, weak results on operational trends and negative cash flow from operations for 2022. History of adequate reserve strength (5.2) as reserves have been consistently at an acceptable level.
Other Rating Factors:
Good overall profitability index (6.8) despite operating losses during 2021. Return on equity has been fair, averaging 9.2% over the past five years. Good liquidity (6.6) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Strong long-term capitalization index (7.5) based on excellent current risk adjusted capital (severe and moderate loss scenarios). Moreover, capital has steadily grown over the last five years.
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:
Personal/comm auto (9.7%), product liab. (9.4%), comm multi (6.2%), fire (0.6%), other (74.1%)
Licensed in:
All states except PR
Principal Investments:
Investment grade bonds (77.6%), common stock (4.3%), non investment grade bonds (3.3%), other (14.9%)