Major Rating Factors:
Weak profitability index (1.2 on a scale of 0 to 10) with operating losses during 2019, 2021, 2022, 2023 and the first nine months of 2024. Average return on equity over the last five years has been poor at -12.0%. Weak overall results on stability tests (1.5) including weak risk diversification, weak results on operational trends and negative cash flow from operations for 2023. The largest net exposure for one risk is excessive at 8.3% of capital. Fair long-term capitalization index (3.2) 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 (5.9) as reserves have been consistently at an acceptable level. Good liquidity (6.8) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
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 (80.1%), farmowners (10.6%), comm multi (2.3%), fire (2.3%), other (4.7%)
Licensed in:
NC
Principal Investments:
Common stock (52.2%), investment grade bonds (11.2%), real estate (5.2%), cash (3.1%), other (28.3%)
Corporate Info
Group Affiliation
None
Investment Rating
--
Company Address
128 West Harden Street
Graham, NC 27253
Graham, NC 27253
Phone Number
(336) 226-7872
NAIC Number
13190
Website
Largest Affiliates
No affiliate information available.