Major Rating Factors:
Fair reserve development (4.6 on a scale of 0 to 10) as reserves have generally been sufficient to cover claims. Fair profitability index (3.7) with operating losses during 2020, 2021 and 2022. Average return on equity over the last five years has been poor at -5.7%. Weak overall results on stability tests (2.8) including excessive premium growth, weak results on operational trends and fair risk adjusted capital in prior years. The largest net exposure for one risk is high at 4.7% of capital.
Other Rating Factors:
Strong long-term capitalization index (7.6) based on excellent current risk adjusted capital (severe and moderate loss scenarios) reflecting significant improvement over results in 2022. Superior liquidity (9.2) with ample operational cash flow and liquid investments.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
G - Fast asset or premium growth.
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 (98.7%), other (1.3%)
Licensed in:
AL, MS
Principal Investments:
Cash (51.4%), investment grade bonds (46.1%), other (2.5%)
Corporate Info
Group Affiliation
Gulf States Holdings Inc
Investment Rating
--
Company Address
15th Place Office Building
Gulfport, MS 39501
Gulfport, MS 39501
Phone Number
(228) 897-9786
NAIC Number
13741
Website
Largest Affiliates