Financial Summary

CARE continues to remain strong and sound financially. It should be noted that an RRG is subject to more regulation than any traditional insurance carriers, is required to operate under a defined and filed business plan, and is subject to the same NAIC reporting requirements including IRIS and Risk Based Capital tests as a traditional insurance company. The CARE financial statements are also closely monitored by Demotech, Inc.

As of December 31, 2020, the company had liquid assets in excess of $16.5 million out of which the company can currently pay claims.

The company has a surplus balance of over $5 million. This balance represents the cumulative capital contributed by the group insureds and the unassigned funds (retained earnings) retained by the company since inception. Now in its 18th year, CARE has never had a net loss in any year since inception and has unassigned funds generated over those years in the amount of over $2.4 million.

Below is a list of the key Financial Solvency Ratios as of December 31, 2020 as derived from the CARE filed annual NAIC Statement:

CAREIndustry Benchmark
Gross Premium to Surplus1.56:1less than 10:1
Net Premium to Surplus1.36:1less than 3:1
Loss Reserves to Surplus2.56:1less than 3:1
Combined Ratio96%Max 110%

As you can see, CARE continues to retain very little risk in comparison to its surplus and is backed by an “A” rated reinsurer to ensure financial stability in the long term. Unlike other carriers, CARE has not resorted to a reserve reduction to bolster income in the soft market and yet still remains profitable through diligent underwriting and tight financial management.

In June 2021, the Vermont Department of Insurance completed the domicile examination process. The full report is publicly available and available upon request.

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