Major Rating Factors:
Fair overall results on stability tests (3.1 on a scale of 0 to 10) including weak financial strength of affiliated Talanx AG and weak results on operational trends. The largest net exposure for one risk is excessive at 5.5% of capital. Good long-term capitalization index (5.3) based on good current risk adjusted capital (moderate loss scenario). Moreover, capital has steadily grown over the last five years.
Other Rating Factors:
History of adequate reserve strength (5.7) as reserves have been consistently at an acceptable level. Good profitability index (5.0) despite operating losses during 2018 and 2020. Return on equity has been low, averaging 3.4% over the past five years. Good liquidity (6.3) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Stability Factors:
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Fire (24.8%), product liab. (11.7%), personal/comm auto (1.4%), comm multi (1.0%), work comp (0.5%), fin guar/surety (0.2%), other (60.5%)
Licensed in:
All states, the District of Columbia and Puerto Rico
Principal Investments:
Investment grade bonds (78.9%), common stock (13.4%), cash (4.4%), non investment grade bonds (2.9%), other (0.4%)
Corporate Info
Group Affiliation
Talanx AG
Investment Rating
--
Company Address
161 N Clark Street - 48th Floo
CHICAGO, IL 60601
CHICAGO, IL 60601
Phone Number
(312) 456-6774
NAIC Number
41343
Website
Largest Affiliates
