D
German American Farm Mutual
Rating Date
June 2025
NAIC
Classification
Risk Adjusted
Capital Ratio #1
Risk Adjusted
Capital Ratio #2
Loss
Ratio
Total
Assets
Capital
Net
Premiums
Net
Income
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Major Rating Factors: Weak profitability index (1.9 on a scale of 0 to 10) with operating losses during 2020, 2021, 2022 and 2023. Average return on equity over the last five years has been poor at -15.3%. Weak overall results on stability tests (1.7) including weak risk diversification and fair risk adjusted capital in prior years. Fair long-term capitalization index (4.4) based on fair current risk adjusted capital (severe loss scenarios), although results have slipped from the good range during the last year.
Other Rating Factors: History of adequate reserve strength (6.9) as reserves have been consistently at an acceptable level. Excellent liquidity (7.4) 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. G - Fast asset or premium growth. 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 (100.0%)
Licensed in: TX
Principal Investments: Investment grade bonds (67.7%), cash (7.9%), common stock (0.2%), other (24.2%)
Ratios
Premium to Surplus
Reserve to Surplus
1-Year Reserve Development
2-Year Reserve Development
Expense Ratio
Combined Ratio
Cash From Underwriting
Net Premium Growth
Investments in Affiliates
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Corporate Info
Group Affiliation
None
Investment Rating
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Company Address
100 South Second Street
Pflugerville, TX 78660
Phone Number
(512) 990-5711
NAIC Number
12877
Largest Affiliates
No affiliate information available.