Major Rating Factors:
Weak overall results on stability tests (2.2 on a scale of 0 to 10) including weak risk diversification. The largest net exposure for one risk is excessive at 8.0% of capital. Fair profitability index (3.3) with operating losses during 2020, 2021, 2022, 2023 and the first six months of 2025. Average return on equity over the last five years has been poor at -6.6%. History of adequate reserve strength (6.2) as reserves have been consistently at an acceptable level.
Other Rating Factors:
Strong long-term capitalization index (7.6) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Excellent liquidity (8.8) 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.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Fire (60.6%), other (39.4%)
Licensed in:
MN
Principal Investments:
Investment grade bonds (73.4%), cash (21.9%), preferred stock (0.8%), real estate (0.6%), common stock (0.2%), other (3.1%)
Corporate Info
Group Affiliation
None
Investment Rating
--
Company Address
115 East Cedar Street
Houston, MN 55943
Houston, MN 55943
Phone Number
(507) 896-3150
NAIC Number
10653
Largest Affiliates
No affiliate information available.