C
Arizona Automobile Ins Co
Rating Date
October 2025
NAIC
Classification
Risk Adjusted
Capital Ratio #1
Risk Adjusted
Capital Ratio #2
Loss
Ratio
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Total
Assets
Capital
Net
Premiums
Net
Income
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Major Rating Factors: Fair profitability index (3.5 on a scale of 0 to 10) with operating losses during 2024 and the first six months of 2025. Return on equity has been fair, averaging 5.4% over the past five years. Fair overall results on stability tests (4.5) including excessive premium growth and negative cash flow from operations for 2024. Strengths include potentially strong support from affiliation with Alfa Mutual Group. Strong long-term capitalization index (9.1) 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. Superior liquidity (9.1) with ample operational cash flow and liquid investments.
Stability Factors: 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: Personal/comm auto (100.0%)
Licensed in: AZ, CO, ID, NM, OK, UT
Principal Investments: Investment grade bonds (66.0%), cash (8.1%), other (25.9%)
Ratios
Premium to Surplus
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Reserve to Surplus
1-Year Reserve Development
2-Year Reserve Development
Expense Ratio
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Combined Ratio
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Cash From Underwriting
Net Premium Growth
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Investments in Affiliates
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Corporate Info
Group Affiliation
Alfa Mutual Group
Investment Rating
--
Company Address
4037 Rural Plains Circle
Franklin, TN 37064
Phone Number
(334) 288-3900
NAIC Number
11805
Largest Affiliates
B
Montgomery, AL - P&C
C
Montgomery, AL - L&A
B
Montgomery, AL - P&C
A
Montgomery, AL - P&C
B
Franklin, TN - P&C