Major Rating Factors:
Weak overall results on stability tests (1.8 on a scale of 0 to 10) including potential drain of affiliation with Auto Club Ins Assn and weak results on operational trends. History of adequate reserve strength (6.9) as reserves have been consistently at an acceptable level.
Other Rating Factors:
Good overall profitability index (6.6). Fair expense controls. Return on equity has been fair, averaging 5.4% over the past five years. Good liquidity (5.8) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Strong long-term capitalization index (9.3) based on excellent current risk adjusted capital (severe and moderate loss scenarios). Moreover, capital levels have been consistent in recent years.
Stability Factors:
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:
Personal/comm auto (53.0%), homeowners (22.6%), comm multi (10.8%), farmowners (3.5%), work comp (3.2%), fire (0.2%), other (6.6%)
Licensed in:
IN, IA, MI, WI
Principal Investments:
Investment grade bonds (92.7%), real estate (0.9%), non investment grade bonds (0.7%), other (5.7%)
Corporate Info
Group Affiliation
Auto Club Ins Assn
Investment Rating
--
Company Address
933 E Main Street
FREMONT, MI 49412
FREMONT, MI 49412
Phone Number
(231) 924-0300
NAIC Number
13994
Website
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