Major Rating Factors:
Poor long-term capitalization index (0.1 on a scale of 0 to 10) based on weak current risk adjusted capital (severe and moderate loss scenarios), although results have slipped from the fair range over the last two years. Weak profitability index (2.2) with operating losses during 2020, 2021, 2022 and 2023. Average return on equity over the last five years has been poor at -36.8%. Fair overall results on stability tests (4.0) including weak risk adjusted capital in prior years and negative cash flow from operations for 2024. The largest net exposure for one risk is acceptable at 2.7% of capital.
Other Rating Factors:
History of adequate reserve strength (6.3) as reserves have been consistently at an acceptable level. Excellent liquidity (7.1) with ample operational cash flow and liquid investments.
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.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Homeowners (93.9%), fire (1.8%), other (4.3%)
Licensed in:
All states except CA, CT, FL, HI, ID, KS, MA, MD, ME, NH, NJ, NY, VT, WI, WV
Principal Investments:
Investment grade bonds (53.4%), common stock (12.0%), cash (6.2%), other (28.4%)
Corporate Info
Group Affiliation
None
Investment Rating
Company Address
1400 Corporate Drive
Irving, TX 75038
Irving, TX 75038
Phone Number
(949) 922-9900
NAIC Number
12536
Website
Largest Affiliates
No affiliate information available.