Major Rating Factors:
Good liquidity (6.8 on a scale of 0 to 10) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Fair reserve development (3.9) as reserves have generally been sufficient to cover claims. In 2023 the two year reserve development was 21.4% deficient. Fair overall results on stability tests (4.8) including. The largest net exposure for one risk is excessive at 5.5% of capital.
Other Rating Factors:
Strong long-term capitalization index (7.3) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Excellent profitability index (8.0) with operating gains in each of the last five years. Return on equity has been good over the last five years, averaging 13.0%.
Stability Factors:
R - Concerns about the financial strength of its reinsurers.
Principal Lines of Business:
Fin guar/surety (10.4%), comm multi (6.2%), personal/comm auto (2.2%), product liab. (0.2%), other (81.1%)
Licensed in:
All states
Principal Investments:
Investment grade bonds (78.3%), non investment grade bonds (8.4%), cash (1.7%), preferred stock (0.2%), common stock (0.1%), other (11.4%)
Corporate Info
Group Affiliation
Tokio Marine Holdings Inc
Investment Rating
--
Company Address
13403 Northwest Freeway
Houston, TX 77040
Houston, TX 77040
Phone Number
(713) 324-1000
NAIC Number
29599
Website
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