Major Rating Factors:
Fair long-term capitalization index (4.6 on a scale of 0 to 10) based on good current risk adjusted capital (severe loss scenarios) reflecting significant improvement over results in 2021. Fair reserve development (3.5) as the level of reserves has at times been insufficient to cover claims. Deficiencies in the two year reserve development occurred in three of the previous five years and ranged between 16.9% and 24.4%. Good liquidity (6.9) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Other Rating Factors:
Good overall results on stability tests (5.4) despite weak risk adjusted capital in prior years. Stability strengths include excellent operational trends and good risk diversification. Excellent profitability index (8.8).
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
Principal Lines of Business:
Personal/comm auto (95.9%), other (4.1%)
Licensed in:
AZ, CA, NM, TX
Principal Investments:
Investment grade bonds (75.2%), common stock (22.1%), cash (0.5%), other (2.2%)
Corporate Info
Group Affiliation
None
Investment Rating
--
Company Address
1137 Key Street
Houston, TX 77009
Houston, TX 77009
Phone Number
(713) 401-9563
NAIC Number
16014
Website
Largest Affiliates
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