Major Rating Factors:
Poor long-term capitalization index (2.5 on a scale of 0 to 10) based on weak current risk adjusted capital (severe loss scenarios), although results have slipped from the fair range during the last year. Good overall results on stability tests (6.0) despite weak risk adjusted capital in prior years. Stability strengths include good operational trends and excellent risk diversification. The largest net exposure for one risk is conservative at 1.9% of capital. Ample reserve history (9.4) that helps to protect the company against sharp claims increases.
Other Rating Factors:
Excellent profitability index (7.7) despite modest operating losses during the first three months of 2025. Excellent liquidity (8.1) with ample operational cash flow and liquid investments.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Work comp (44.4%), homeowners (16.1%), personal/comm auto (6.4%), comm multi (6.1%), farmowners (0.9%), fin guar/surety (0.4%), other (25.7%)
Licensed in:
All states except ND, NH, OH, WY
Principal Investments:
Investment grade bonds (87.6%), common stock (10.8%), cash (0.8%), preferred stock (0.4%), non investment grade bonds (0.3%)
Corporate Info
Group Affiliation
Ernest Rady Trust
Investment Rating
--
Company Address
15025 Innovation Drive
San Diego, CA 92128
San Diego, CA 92128
Phone Number
(858) 350-2400
NAIC Number
40029
Largest Affiliates