Major Rating Factors:
Weak overall results on stability tests (2.9 on a scale of 0 to 10) including excessive premium growth and weak risk diversification. The largest net exposure for one risk is high at 4.5% of capital. Fair reserve development (5.0) as reserves have generally been sufficient to cover claims. Good overall profitability index (6.4) despite operating losses during 2022.
Other Rating Factors:
Strong long-term capitalization index (7.8) based on excellent current risk adjusted capital (severe and moderate loss scenarios) reflecting improvement over results in 2021. Good liquidity (7.0) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
G - Fast asset or premium growth.
R - Concerns about the financial strength of its reinsurers.
Principal Lines of Business:
Fire (32.8%), other (67.2%)
Licensed in:
MN
Principal Investments:
Investment grade bonds (44.5%), common stock (43.3%), cash (10.8%), real estate (0.4%), preferred stock (0.3%), other (0.8%)
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
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