Major Rating Factors:
Poor long-term capitalization index (0.4 on a scale of 0 to 10) based on weak current risk adjusted capital (severe and moderate loss scenarios). A history of deficient reserves (0.4) that places pressure on both capital and profits. In the last five years, reserves (two year development) fluctuated between 343% and 133% deficeint.
Other Rating Factors:
Weak profitability index (1.1) with operating losses during each of the last five years. Average return on equity over the last five years has been poor at -46.9%. Vulnerable liquidity (0.7) as a spike in claims may stretch capacity. Weak overall results on stability tests (0.8) including weak risk adjusted capital in prior years, weak results on operational trends and negative cash flow from operations for 2022. The largest net exposure for one risk is conservative at 1.6% of capital.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
L - Past results on our liquidity tests.
Principal Lines of Business:
Personal/comm auto (95.6%), homeowners (4.4%)
Licensed in:
AL, AZ, FL, GA, IL, IN, KY, LA, MS, NM, OH, SC, TN, UT
Principal Investments:
Investment grade bonds (49.0%), cash (17.9%), common stock (12.7%), real estate (1.9%), other (18.5%)
Corporate Info
Group Affiliation
Producers National Corp
Investment Rating
--
Company Address
7400 N Caldwell Ave
Niles, IL 60714
Niles, IL 60714
Phone Number
(773) 299-7574
NAIC Number
10655
Website
Largest Affiliates
