Major Rating Factors: Fair reserve development (3.8 on a scale of 0 to 10) as the level of reserves has at times been insufficient to cover claims. In 2018 and 2017 the two year reserve development was 17% and 34% deficient respectively. Fair profitability index (3.9) with operating losses during 2018, 2019 and the first six months of 2022. Avg. ROE over the last five years has been poor at -0.1%.
Other Rating Factors: Fair overall results on stability tests (3.6) including fair financial strength of affiliated Aspen Insurance Holdings Ltd and excessive premium growth. The largest net exposure for one risk is conservative at 1.0% of cap. long-term capitalization index (7.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Excellent liquidity (7.4) with ample operational cash flow and liquid investments.
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: Med mal (9.8%), fire (6.9%), comm multi (5.2%), acc & health (4.9%), fin guar/surety (3.8%), homeowners (0.5%), other (68.8%)
Licensed in: All states, the District of Columbia and Puerto Rico
Principal Investments: Investment grade bonds (54.1%), common stock (22.3%), cash (13.2%), non investment grade bonds (2.9%), other (7.5%)