Major Rating Factors:
Fair reserve development (4.6 on a scale of 0 to 10) as reserves have generally been sufficient to cover claims. Weak overall results on stability tests (2.6) including weak risk diversification. The largest net exposure for one risk is excessive at 5.6% of capital. Good overall profitability index (5.0) despite operating losses during 2022. Return on equity has been low, averaging 1.5% over the past five years.
Other Rating Factors:
Strong long-term capitalization index (7.6) based on excellent current risk adjusted capital (severe and moderate loss scenarios) reflecting improvement over results in 2021. Excellent liquidity (7.2) with ample operational cash flow and liquid investments.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
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 (33.3%), other (66.7%)
Licensed in:
MN
Principal Investments:
Investment grade bonds (43.9%), common stock (42.7%), cash (10.1%), real estate (0.4%), preferred stock (0.4%), other (2.4%)
Corporate Info
Group Affiliation
None
Investment Rating
--
Company Address
125 Third Street
Balaton, MN 56115
Balaton, MN 56115
Phone Number
(507) 734-3541
NAIC Number
12362
Website
Largest Affiliates
No affiliate information available.