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. History of adequate reserve strength (6.9) as reserves have been consistently at an acceptable level.
Other Rating Factors:
Good overall profitability index (5.6) despite operating losses during the first six months of 2022. Return on equity has been low, averaging 4.4% 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 (9.2) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels.
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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