Major Rating Factors:
Fair profitability index (3.2). Fair expense controls. Return on equity has been fair, averaging 19.2% over the past five years.
Other Rating Factors:
Fair overall results on stability tests (4.5) including weak results on operational trends. Strong long-term capitalization index (8.6) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Excellent liquidity (8.9) with ample operational cash flow and liquid investments.
Stability Factors:
A - Financial problems or weaknesses of a parent or affiliate company.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Comm multi (18.2%), homeowners (5.8%), personal/comm auto (4.0%), fire (2.6%), product liab. (1.2%), farmowners (0.2%), other (68.0%)
Licensed in:
All states, the District of Columbia and Puerto Rico
Principal Investments:
Investment grade bonds (61.5%), common stock (22.6%), non investment grade bonds (9.1%), other (6.9%)