Major Rating Factors:
Weak overall results on stability tests (2.3 on a scale of 0 to 10) including excessive premium growth and weak risk diversification. The largest net exposure for one risk is excessive at 6.2% of capital. Fair profitability index (4.4) with operating losses during 2021, 2022 and 2023. History of adequate reserve strength (6.7) as reserves have been consistently at an acceptable level.
Other Rating Factors:
Strong long-term capitalization index (8.1) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Excellent liquidity (7.6) with ample operational cash flow and liquid investments.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
G - Fast asset or premium growth.
R - Concerns about the financial strength of its reinsurers.
Principal Lines of Business:
Fire (59.6%), other (40.4%)
Licensed in:
MN
Principal Investments:
Investment grade bonds (75.8%), cash (22.4%), preferred stock (0.7%), real estate (0.5%), common stock (0.2%), other (0.5%)
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
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