Major Rating Factors:
History of adequate reserve strength (6.3 on a scale of 0 to 10) as reserves have been consistently at an acceptable level. Good liquidity (6.9) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Other Rating Factors:
Fair profitability index (4.8) with operating losses during 2020 and 2021. Average return on equity over the last five years has been poor at -0.8%. Fair overall results on stability tests (4.6) including excessive premium growth and weak results on operational trends. The largest net exposure for one risk is conservative at 1.3% of capital. Strong long-term capitalization index (8.5) based on excellent current risk adjusted capital (severe and moderate loss scenarios). Moreover, capital levels have been consistent in recent years.
Stability Factors:
G - Fast asset or premium growth.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Fin guar/surety (33.2%), other (66.8%)
Licensed in:
All states except PR
Principal Investments:
Investment grade bonds (56.8%), cash (8.4%), common stock (6.2%), non investment grade bonds (0.5%), other (28.1%)
Corporate Info
Group Affiliation
Houston International Ins Group Ltd
Investment Rating
--
Company Address
800 Gessner Suite 600
Houston, TX 77024
Houston, TX 77024
Phone Number
(414) 369-5033
NAIC Number
18694
Website
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