Major Rating Factors:
Good overall results on stability tests (5.3 on a scale of 0 to 10) despite excessive premium growth. Stability strengths include excellent operational trends and good risk diversification. The largest net exposure for one risk is conservative at 1.4% of capital. Strong long-term capitalization index (9.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Ample reserve history (7.0) that can protect against increases in claims costs.
Other Rating Factors:
Excellent profitability index (7.2) despite operating losses during 2021 and 2023. Excellent liquidity (7.2) with ample operational cash flow and liquid investments.
Stability Factors:
R - Concerns about the financial strength of its reinsurers.
Principal Lines of Business:
Fire (25.5%), other (74.5%)
Licensed in:
IA, MN
Principal Investments:
Investment grade bonds (70.0%), cash (19.3%), common stock (9.5%), real estate (0.8%), other (0.4%)
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
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