Privilege Underwriters Recpl
Major Rating Factors:
Good long-term capitalization index (6.6 on a scale of 0 to 10) based on fair current risk adjusted capital (moderate loss scenarios), although results have slipped from the weak range during the last year. Weak profitability index (2.7) with operating losses during each of the last five years and the first nine months of 2024. Average return on equity over the last five years has been poor at -20.6%. Vulnerable liquidity (1.5) as a spike in claims may stretch capacity.
Other Rating Factors:
Fair reserve development (5.0) as reserves have generally been sufficient to cover claims. Excellent overall results on stability tests (7.0) despite negative cash flow from operations for 2023 and weak risk adjusted capital in prior years. Strengths include potentially strong support from affiliation with Tokio Marine Holdings Inc. The largest net exposure for one risk is acceptable at 2.0% of capital.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
F - Negative cash flow.
G - Fast asset or premium growth.
L - Past results on our liquidity tests.
Principal Lines of Business:
Homeowners (62.0%), personal/comm auto (19.1%), other (18.9%)
Licensed in:
All states and Canada
Principal Investments:
Investment grade bonds (72.4%), non investment grade bonds (3.3%), common stock (2.8%), other (21.5%)
Corporate Info
Group Affiliation
Tokio Marine Holdings Inc
Investment Rating
--
Company Address
44 South Broadway
White Plains, NY 10601
White Plains, NY 10601
Phone Number
(914) 328-0002
NAIC Number
12873
Website
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