Major Rating Factors:
Fair reserve development (3.6 on a scale of 0 to 10) as reserves have generally been sufficient to cover claims. Good overall profitability index (5.1) with operating gains in each of the last five years. Excellent expense controls. Return on equity has been low, averaging 1.9% over the past five years. Good liquidity (6.9) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Other Rating Factors:
Good overall results on stability tests (5.2) despite excessive premium growth and negative cash flow from operations for 2024. Other stability subfactors include potentially strong support from affiliation with American Family Ins Group, good operational trends and excellent risk diversification. Strong long-term capitalization index (8.5) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
G - Fast asset or premium growth.
Principal Lines of Business:
Homeowners (90.6%), other (9.4%)
Licensed in:
CA, MA
Principal Investments:
Investment grade bonds (98.7%), other (1.3%)
Corporate Info
Group Affiliation
American Family Ins Group
Investment Rating
--
Company Address
290 Congress Street
Boston, MA 02210
Boston, MA 02210
Phone Number
(617) 832-1300
NAIC Number
11005
Website
Largest Affiliates