Major Rating Factors:
Weak profitability index (1.6 on a scale of 0 to 10) with operating losses during 2021, 2022, 2023 and 2024. Weak overall results on stability tests (2.0) including weak risk diversification, weak results on operational trends and negative cash flow from operations for 2024. The largest net exposure for one risk is excessive at 6.2% of capital. 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 over the last two years.
Other Rating Factors:
Fair reserve development (4.6) as reserves have generally been sufficient to cover claims. Fair liquidity (3.3) as cash resources may not be adequate to cover 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 (84.8%), farmowners (8.5%), comm multi (1.9%), fire (1.7%), other (3.1%)
Licensed in:
NC
Principal Investments:
Investment grade bonds (54.7%), common stock (30.6%), cash (7.7%), real estate (5.4%), other (1.6%)
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.