Development
Major Rating Factors:
Fair quality investment portfolio (4.8 on a scale of 0 to 10) with large holdings of BBB rated bonds in addition to junk bond exposure equal to 94% of capital. Exposure to mortgages is significant, but the mortgage default rate has been low. Fair Liquidity (4.8) as cash from operations and sale of marketable assets may not be adequate to cover a spike in claims or a run on policy withdrawals. Fair overall results on stability tests (3.9) including negative cash flow from operations for 2023.
Other Rating Factors:
Weak profitability (2.0) with operating losses during the first three months of 2024. Strong capitalization (7.1) based on excellent risk adjusted capital (severe loss scenario).
Stability Factors:
A - Financial problems or weaknesses of a parent or affiliate company.
C - Past results on our Risk-Adjusted Capital tests.
I - Past results on our Investment Safety Index.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
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Licensed in:
All states except PR
Investments
Invested Assets
Cash
CMO & Structured Securities
Other Investment Grade Bonds
Non-Investment Grade Bonds
Common & Preferred Stock
Mortgages in Good Standing
Non-Performing Mortgages
Real Estate
Other Investments
Investments in Affiliates
Corporate Info
Group Affiliation
American International Group
Investment Rating
Company Address
2929 Allen Parkway
Houston, TX 77019
Houston, TX 77019
Phone Number
(713) 831-3283
NAIC Number
70238
Largest Affiliates