Major Rating Factors:
Poor long-term capitalization index (2.7 on a scale of 0 to 10) based on weak current risk adjusted capital (severe loss scenarios), although results have slipped from the fair range during the last year. Weak profitability index (1.1) with operating losses during each of the last five years. Weak overall results on stability tests (1.5) including weak risk diversification, weak results on operational trends and fair risk adjusted capital in prior years. The largest net exposure for one risk is excessive at 11.6% of capital.
Other Rating Factors:
Fair reserve development (4.2) as reserves have generally been sufficient to cover claims. Good liquidity (5.3) 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.
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 (86.1%), farmowners (7.3%), comm multi (1.7%), fire (1.6%), other (3.4%)
Licensed in:
NC
Principal Investments:
Investment grade bonds (59.0%), common stock (20.6%), cash (12.8%), real estate (4.9%), other (2.7%)
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
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