Major Rating Factors:
Weak overall results on stability tests (2.5 on a scale of 0 to 10) including weak risk diversification. The largest net exposure for one risk is excessive at 5.9% of capital. History of adequate reserve strength (6.3) as reserves have been consistently at an acceptable level. Good overall profitability index (5.7) despite operating losses during 2021 and 2022.
Other Rating Factors:
Strong long-term capitalization index (9.3) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Excellent liquidity (7.8) 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.
Principal Lines of Business:
Fire (44.8%), other (55.2%)
Licensed in:
MN
Principal Investments:
Investment grade bonds (78.3%), cash (14.6%), common stock (5.1%), real estate (2.0%)
Corporate Info
Group Affiliation
None
Investment Rating
--
Company Address
1904 Eighth Street, NW
Austin, MN 55912
Austin, MN 55912
Phone Number
(507) 433-6646
NAIC Number
12418
Website
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