D
TOWER HILL PRIME INS CO
Rating Date
December 2023
NAIC
Classification
Risk Adjusted
Capital Ratio #1
Risk Adjusted
Capital Ratio #2
Loss
Ratio
Total
Assets
Capital
Net
Premiums
Net
Income
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Major Rating Factors: Weak overall results on stability tests (1.6 on a scale of 0 to 10) including potential drain of affiliation with Tower Hill Group, weak results on operational trends and negative cash flow from operations for 2022. The largest net exposure for one risk is high at 3.1% of capital. Weak profitability index (1.3) with operating losses during 2020, 2021 and 2022. Average return on equity over the last five years has been poor at -13.1%.
Other Rating Factors: Vulnerable liquidity (0.7) as a spike in claims may stretch capacity. Fair reserve development (3.5) as reserves have generally been sufficient to cover claims. In 2022, the two year reserve development was 16% deficient. Good overall long-term capitalization (6.8) based on good current risk adjusted capital (moderate loss scenario). However, capital levels have fluctuated during prior years.
Stability Factors: F - Negative cash flow. L - Past results on our liquidity tests. R - Concerns about the financial strength of its reinsurers. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Homeowners (65.0%), comm multi (11.2%), fire (4.2%), other (19.7%)
Licensed in: AL, AZ, AR, FL, GA, IL, IN, KY, LA, MI, MS, MO, NV, NM, NC, OH, PA, SC, TN, TX, UT, WI
Principal Investments: Investment grade bonds (74.4%), non investment grade bonds (2.6%), other (23.0%)
Ratios
Premium to Surplus
Reserve to Surplus
1-Year Reserve Development
2-Year Reserve Development
Expense Ratio
Combined Ratio
Cash From Underwriting
Net Premium Growth
Investments in Affiliates
Corporate Info
Group Affiliation
Tower Hill Group
Investment Rating
--
Company Address
7201 Nw 11th Place
GAINESVILLE, FL 32605
Phone Number
(352) 333-1426
NAIC Number
11027
Largest Affiliates
A
GAINESVILLE, FL - P&C
D
GAINESVILLE, FL - P&C
D
GAINESVILLE, FL - P&C
Weiss Ratings