Major Rating Factors:
Weak profitability index (1.0 on a scale of 0 to 10) with operating losses during 2021, 2022, 2023, 2024 and the first six months of 2025. Average return on equity over the last five years has been poor at -39.0%. Fair reserve development (3.1) as the level of reserves has at times been insufficient to cover claims. In 2023 and 2024 the two year reserve development was 18.3% and 22.2% deficient respectively. Fair overall results on stability tests (4.5) including weak risk adjusted capital in prior years, weak results on operational trends and negative cash flow from operations for 2024. Strengths include potentially strong support from affiliation with Auto Club Exchange Group.
Other Rating Factors:
Good liquidity (6.5) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Strong long-term capitalization index (7.9) based on excellent current risk adjusted capital (severe and moderate loss scenarios) reflecting significant improvement over results in 2023.
Stability Factors:
F - Negative cash flow.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (92.9%), homeowners (6.2%), fire (0.4%), other (0.5%)
Licensed in:
CA, NV, OR
Principal Investments:
Investment grade bonds (78.5%), cash (19.4%), non investment grade bonds (0.4%), other (1.7%)
Corporate Info
Group Affiliation
Auto Club Exchange Group
Investment Rating
--
Company Address
8954 Rio San Diego Drive
San Diego, CA 92108
San Diego, CA 92108
Phone Number
(858) 874-5339
NAIC Number
10683
Website
Largest Affiliates