Major Rating Factors:
Poor long-term capitalization index (2.6 on a scale of 0 to 10) based on weak current risk adjusted capital (severe loss scenarios). Weak profitability index (0.9) with operating losses during 2024 and the first six months of 2025. Weak overall results on stability tests (0.7) including weak results on operational trends, weak risk diversification and weak risk adjusted capital in prior years. The largest net exposure for one risk is excessive at 19.0% of capital.
Other Rating Factors:
Fair reserve development (4.6) as reserves have generally been sufficient to cover claims. Excellent liquidity (8.0) 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 (40.8%), other (59.2%)
Licensed in:
MN
Principal Investments:
Investment grade bonds (84.6%), cash (10.6%), common stock (0.4%), other (4.4%)
Corporate Info
Group Affiliation
None
Investment Rating
--
Company Address
105 Third Street, West
Halstad, MN 56548
Halstad, MN 56548
Phone Number
(218) 456-2174
NAIC Number
12396
Website
Largest Affiliates
No affiliate information available.