Major Rating Factors:
Weak profitability index (2.2 on a scale of 0 to 10) with operating losses during 2022, 2023 and 2024. Average return on equity over the last five years has been poor at -8.0%. Good overall results on stability tests (5.5) despite negative cash flow from operations for 2024. Strengths include potentially strong support from affiliation with Auto Club Ins Association Group. Strong long-term capitalization index (7.2) based on excellent current risk adjusted capital (severe and moderate loss scenarios) reflecting improvement over results in 2024.
Other Rating Factors:
Ample reserve history (9.4) that helps to protect the company against sharp claims increases. Excellent liquidity (7.1) 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 (60.9%), homeowners (37.0%), comm multi (0.7%), work comp (0.1%), farmowners (0.1%), other (1.2%)
Licensed in:
AL, IA, IL, IN, KS, KY, MI, MN, NC, ND, NE, OH, OK, SC, SD, VA, WV
Principal Investments:
Investment grade bonds (98.8%), other (1.2%)
Corporate Info
Group Affiliation
Auto Club Ins Association Group
Investment Rating
--
Company Address
One Auto Club Drive
Dearborn, MI 48126
Dearborn, MI 48126
Phone Number
(313) 336-1234
NAIC Number
11983
Website
Largest Affiliates