Major Rating Factors:
Fair long-term capitalization index (3.8 on a scale of 0 to 10) based on fair current risk adjusted capital (severe loss scenarios) reflecting improvement over results in 2024. Fair reserve development (3.1) as the level of reserves has at times been insufficient to cover claims. In 2024 and 2023 the two year reserve development was 19.9% and 19.9% deficient respectively. Fair profitability index (4.7) with operating losses during 2020, 2022 and the first six months of 2025. Return on equity has been low, averaging 0.3% over the past five years.
Other Rating Factors:
Fair overall results on stability tests (3.6) including negative cash flow from operations for 2024 and weak risk adjusted capital in prior years. Excellent liquidity (8.6) 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.
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Homeowners (83.9%), fire (6.3%), other (9.9%)
Licensed in:
LA, OK, TX
Principal Investments:
Cash (70.9%), investment grade bonds (27.9%), common stock (1.1%)
Corporate Info
Group Affiliation
None
Investment Rating
--
Company Address
4669 Southwest Freeway
Houston, TX 77027
Houston, TX 77027
Phone Number
(713) 559-0700
NAIC Number
12898
Website
Largest Affiliates
No affiliate information available.