Merchants Bonding Co (Mutual)
Major Rating Factors:
Strong long-term capitalization index (8.9 on a scale of 0 to 10) based on excellent current risk adjusted capital (severe and moderate loss scenarios). Furthermore, this high level of risk adjusted capital has been consistently maintained in previous years. Ample reserve history (8.2) that helps to protect the company against sharp claims increases. Excellent profitability index (8.6).
Other Rating Factors:
Good liquidity (6.9) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Excellent overall results on stability tests (7.9). Stability strengths include excellent operational trends and excellent risk diversification. The largest net exposure for one risk is conservative at 1.6% of capital.
Stability Factors:
L - Past results on our liquidity tests.
R - Concerns about the financial strength of its reinsurers.
Principal Lines of Business:
Fin guar/surety (96.4%), other (3.6%)
Licensed in:
All states
Principal Investments:
Investment grade bonds (70.1%), common stock (22.3%), real estate (3.0%), cash (2.5%), other (2.2%)
Corporate Info
Group Affiliation
Merchants Bonding Co (Mutual)
Investment Rating
--
Company Address
6700 Westown Parkway
West Des Moines, IA 50266
West Des Moines, IA 50266
Phone Number
(515) 243-8171
NAIC Number
14494
Website
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