C
Preferred Auto Ins Co
Rating Date
June 2025
NAIC
Classification
Risk Adjusted
Capital Ratio #1
Risk Adjusted
Capital Ratio #2
Loss
Ratio
Total
Assets
Capital
Net
Premiums
Net
Income
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Major Rating Factors: Weak overall results on stability tests (2.4 on a scale of 0 to 10) including weak risk diversification. Fair profitability index (4.6) with operating losses during 2021 and 2022. Return on equity has been low, averaging 0.9% over the past five years. Strong long-term capitalization index (10.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels.
Other Rating Factors: History of adequate reserve strength (7.0) as reserves have been consistently at an acceptable level. Superior liquidity (9.2) with ample operational cash flow and liquid investments.
Stability Factors: D - Limited diversification of general business, policy, and/or investment risk. R - Concerns about the financial strength of its reinsurers.
Principal Lines of Business: Personal/comm auto (100.0%)
Licensed in: (No states)
Principal Investments: Cash (96.7%), investment grade bonds (3.3%)
Ratios
Premium to Surplus
Reserve to Surplus
1-Year Reserve Development
2-Year Reserve Development
Expense Ratio
Combined Ratio
Cash From Underwriting
Net Premium Growth
Investments in Affiliates
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Corporate Info
Group Affiliation
None
Investment Rating
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Company Address
3800 Highway 57
Rossville, TN 38066
Phone Number
(901) 328-2000
NAIC Number
10223
Website
Largest Affiliates
No affiliate information available.