Major Rating Factors:
Weak profitability index (2.0 on a scale of 0 to 10) with operating losses during 2024 and 2025. Vulnerable liquidity (0.5) as a spike in claims may stretch capacity. Weak overall results on stability tests (1.6) including weak risk diversification, negative cash flow from operations for 2025 and excessive premium growth. The largest net exposure for one risk is excessive at 16.7% of capital.
Other Rating Factors:
Fair long-term capitalization index (3.9) based on fair current risk adjusted capital (severe and moderate loss scenarios) reflecting improvement over results in 2024. History of adequate reserve strength (5.0) as reserves have been consistently at an acceptable level.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
L - Past results on our liquidity tests.
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 (40.1%), other (59.9%)
Licensed in:
MN
Principal Investments:
Investment grade bonds (87.3%), cash (7.7%), common stock (0.4%), other (4.6%)
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
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