S&P Assigns Sublimity Insurance Co. `BBpi' Rating
27 November 2000
S&P Assigns Sublimity Insurance Co. `BBpi' Rating
NEW YORK--Standard & Poor's--Nov. 27, 2000-- Standard & Poor's today assigned its double-'Bpi' financial strength rating to Sublimity Insurance Co. (Sublimity Insurance).The rating is based on weak operating performance, limited business scope, and limited geographic diversification. Positive factors include a conservative investment portfolio and good liquidity.
Sublimity Insurance (NAIC:26824), based in Sublimity, Ore., writes mainly private passenger auto and homeowner's insurance. Its business lies within Oregon and Idaho, and its products are distributed primarily through independent general agents. The company, which began business in 1896, is licensed in Idaho and Oregon and operates as a mutual insurance company.
Major Rating Factors:
| -- | Operating performance has been weak, with a five-year average ROR of negative 3.7%. |
| -- | The company's business scope is considered limited. Surplus was $2.4 million at year-end 1999, and total 1999 net premiums written amounted to $5.0 million. |
| -- | The company's geographic and product line concentrations are high with respect to current capitalization. In 1999, 75% of direct premiums were in Oregon. |
| -- | Capitalization is extremely strong, as indicated by a Standard & Poor's capital adequacy ratio of 182.5%. In light of the company's geographic concentration, however, an even greater level of capitalization is required for a higher rating. |
| -- | The company's investment profile is conservative, with total common and preferred stock representing just 2.6% of surplus. |
Ratings with a 'pi' subscript are insurer financial strength ratings based on an analysis of an insurer's published financial information and additional information in the public domain. They do not reflect in-depth meetings with an insurer's management and are therefore based on less comprehensive information than ratings without a 'pi' subscript.
Ratings with a 'pi' subscript are reviewed annually based on a new year's financial statements, but may be reviewed on an interim basis if a major event that may affect the insurer's financial security occurs. Ratings with a 'pi' subscript are not subject to potential CreditWatch listings.
Ratings with a 'pi' subscript generally are not modified with "plus" or "minus" designations. However, such designations may be assigned when the insurer's financial strength rating is constrained by sovereign risk or the credit quality of a parent company or affiliated group, Standard & Poor's said.--CreditWire