Major Rating Factors:
Fair long-term capitalization index (3.7 on a scale of 0 to 10) based on fair current risk adjusted capital (severe loss scenarios), although results have slipped from the excellent range during the last year. Fair overall results on stability tests (3.9) including weak results on operational trends and weak risk adjusted capital in prior years. History of adequate reserve strength (5.0) as reserves have been consistently at an acceptable level.
Other Rating Factors:
Good overall profitability index (5.3) with operating gains in each of the last five years. Return on equity has been low, averaging 3.4% over the past five years. Excellent liquidity (7.0) with ample operational cash flow and liquid investments.
Stability Factors:
A - Financial problems or weaknesses of a parent or affiliate company.
C - Past results on our Risk-Adjusted Capital tests.
G - Fast asset or premium growth.
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (76.9%), homeowners (10.8%), work comp (5.2%), fire (0.8%), other (6.3%)
Licensed in:
All states except KS, NY
Principal Investments:
Cash (47.7%), common stock (14.6%), investment grade bonds (7.2%), other (30.5%)
Corporate Info
Group Affiliation
Merfax Financial Group LLC
Investment Rating
--
Company Address
13215 Bee Cave Parkway
Austin, TX 78738
Austin, TX 78738
Phone Number
(737) 615-4700
NAIC Number
11090
Website
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