Major Rating Factors:
Good overall profitability index (5.1 on a scale of 0 to 10) despite operating losses during 2021 and 2023. Return on equity has been low, averaging 2.2% over the past five years. Good overall results on stability tests (5.1) despite. Stability strengths include good operational trends and good risk diversification. The largest net exposure for one risk is conservative at 1.8% of capital. Strong long-term capitalization index (8.9) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels.
Other Rating Factors:
History of adequate reserve strength (7.0) as reserves have been consistently at an acceptable level. Excellent liquidity (8.5) with ample operational cash flow and liquid investments.
Stability Factors:
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Fire (25.4%), other (74.6%)
Licensed in:
IA, MN
Principal Investments:
Investment grade bonds (74.5%), common stock (10.3%), cash (8.6%), real estate (1.1%), other (5.4%)
Corporate Info
Group Affiliation
None
Investment Rating
--
Company Address
118 Downtown Plaza
Fairmont, MN 56031
Fairmont, MN 56031
Phone Number
(507) 235-9476
NAIC Number
11186
Largest Affiliates
No affiliate information available.