Major Rating Factors:
Weak profitability index (2.0 on a scale of 0 to 10) with operating losses during 2022, 2023 and 2024. Average return on equity over the last five years has been poor at -12.3%. Fair reserve development (3.7) as reserves have generally been sufficient to cover claims. In 2024 the two year reserve development was 16.7% deficient. Fair overall results on stability tests (4.5) including negative cash flow from operations for 2024. The largest net exposure for one risk is conservative at 1.7% of capital.
Other Rating Factors:
Good liquidity (6.7) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Strong long-term capitalization index (7.7) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels.
Stability Factors:
F - Negative cash flow.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Comm multi (49.3%), med mal (19.9%), work comp (14.9%), personal/comm auto (6.3%), other (9.6%)
Licensed in:
All states
Principal Investments:
Investment grade bonds (79.1%), common stock (7.0%), real estate (2.5%), preferred stock (1.2%), cash (0.9%), other (9.3%)
Corporate Info
Group Affiliation
Pharmacists Mutual Ins Co
Investment Rating
--
Company Address
808 Highway 18 West
Algona, IA 50511
Algona, IA 50511
Phone Number
(515) 295-2461
NAIC Number
13714
Website
Largest Affiliates