Major Rating Factors:
A history of deficient reserves (3.0 on a scale of 0 to 10) that places pressure on both capital and profits. In 2025 and 2024 the two year reserve development was 19.0% and 45.5% deficient respectively. Good long-term capitalization index (5.0) based on fair current risk adjusted capital (severe and moderate loss scenarios) reflecting improvement over results in 2024. Good overall profitability index (6.7). Excellent expense controls.
Other Rating Factors:
Good liquidity (6.1) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Good overall results on stability tests (5.8) despite weak risk adjusted capital in prior years and negative cash flow from operations for 2025. Stability strengths include good operational trends and excellent risk diversification.
Stability Factors:
A - Financial problems or weaknesses of a parent or affiliate company.
C - Past results on our Risk-Adjusted Capital tests.
F - Negative cash flow.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (62.9%), homeowners (9.7%), comm multi (8.4%), fire (7.0%), work comp (3.7%), other (8.2%)
Licensed in:
All states except NY
Principal Investments:
Cash (39.9%), investment grade bonds (17.7%), other (42.4%)
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
Largest Affiliates