Major Rating Factors:
Fair profitability index (3.1 on a scale of 0 to 10) with operating losses during 2022, 2023 and the first six months of 2024. Average return on equity over the last five years has been poor at -2.6%. Good liquidity (6.3) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Good overall results on stability tests (6.9) despite negative cash flow from operations for 2023. Stability strengths include good operational trends and excellent risk diversification.
Other Rating Factors:
Strong long-term capitalization index (8.3) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Ample reserve history (9.3) that helps to protect the company against sharp claims increases.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (53.9%), homeowners (23.5%), comm multi (11.1%), work comp (2.9%), farmowners (2.8%), fire (0.2%), other (5.7%)
Licensed in:
IA, IN, MI, WI
Principal Investments:
Investment grade bonds (86.6%), real estate (0.7%), other (12.7%)
Corporate Info
Group Affiliation
Auto Club Ins Association Group
Investment Rating
--
Company Address
933 East Main Street
Fremont, MI 49412
Fremont, MI 49412
Phone Number
(231) 924-0300
NAIC Number
13994
Website
Largest Affiliates
