An insurance company which provides customized insurance products and solutions to small and medium-sized businesses.
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Highly competitive market, softening margins, weak ratios lead me to believe their in a "ride out the storm" pattern for their business. They are domiciled in Bermuda, and state in their 10-K they cannot pay a dividend to to solvency issues to their insured. Their expense ratio (~38%) is high, even for their market, and their combined ratio (95.3%) isn't much better.Commercial insurance is an extremely price sensitive, and risky business. The major business segment was US construction, and they're taking a hard hit on earned premium; and will also have a hard time getting this business as profitable as it once was.The main thing that worries me is their inability to give a divendend, and their main business segment losing ground, and the possibility of having to misprice their products to gain customers. A lapse in underwriting principle could be really be a problem for a small company like this, and it will be hard to maintain strict underwriting standards in this market.