Homestead Ins Co
Major Rating Factors:
Weak profitability index (2.8 on a scale of 0 to 10) with operating losses during 2022, 2023, 2024 and the first six months of 2025. Return on equity has been fair, averaging 12.3% over the past five years. Weak overall results on stability tests (2.4) including weak risk diversification, weak results on operational trends and negative cash flow from operations for 2024. Fair long-term capitalization index (3.5) based on fair current risk adjusted capital (severe loss scenarios) reflecting improvement over results in 2020.
Other Rating Factors:
Fair reserve development (3.6) as the level of reserves has at times been insufficient to cover claims. In 2024 and 2023 the two year reserve development was 36.2% and 38.4% deficient respectively. Good liquidity (5.9) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Other (100%)
Licensed in:
DC, GA, LA, NJ, PA
Principal Investments:
Cash (10.4%), investment grade bonds (9.1%), other (80.5%)
Corporate Info
Group Affiliation
None
Investment Rating
--
Company Address
50 South 16th Street
Philadelphia, PA 19102
Philadelphia, PA 19102
Phone Number
(215) 636-0660
NAIC Number
11460
Website
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Largest Affiliates
No affiliate information available.