Major Rating Factors:
Fair overall results on stability tests (4.1 on a scale of 0 to 10) including weak results on operational trends, negative cash flow from operations for 2022 and fair risk adjusted capital in prior years. Strengths include potentially strong support from affiliation with Kemper Corporation. Fair long-term capitalization index (3.6) based on fair current risk adjusted capital (severe and moderate loss scenarios), although results have slipped from the good range over the last two years.
Other Rating Factors:
Excellent liquidity (7.0) with ample operational cash flow and liquid investments. Weak profitability index (2.2). Weak expense controls. Return on equity has been fair, averaging 5.3% over the past five years.
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.
R - Concerns about the financial strength of its reinsurers.
Principal Lines of Business:
Personal/comm auto (54.1%), homeowners (37.2%), fire (2.9%), other (5.8%)
Licensed in:
AZ, CA, CO, CT, GA, IL, IN, KS, ME, MD, MI, MO, NV, NY, NC, OH, OR, PA, SD, TX, VT, VA, WI
Principal Investments:
Investment grade bonds (99.9%), cash (0.1%)