Major Rating Factors:
Fair profitability index (3.5 on a scale of 0 to 10) with operating losses during 2022 and 2023. Average return on equity over the last five years has been poor at -11.6%. History of adequate reserve strength (5.8) as reserves have been consistently at an acceptable level. Good liquidity (6.3) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Other Rating Factors:
Good overall results on stability tests (6.2) despite negative cash flow from operations for 2024. Stability strengths include good operational trends, good risk adjusted capital for prior years and good risk diversification. Strong long-term capitalization index (7.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios) reflecting improvement over results in 2023.
Stability Factors:
F - Negative cash flow.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Farmowners (27.0%), homeowners (25.4%), personal/comm auto (21.4%), fire (13.6%), work comp (5.4%), comm multi (4.7%), other (2.6%)
Licensed in:
MN, ND, SD
Principal Investments:
Investment grade bonds (60.5%), common stock (11.7%), real estate (4.5%), preferred stock (1.4%), other (22.0%)
Corporate Info
Group Affiliation
None
Investment Rating
--
Company Address
125 East Highway 61
Esko, MN 55733
Esko, MN 55733
Phone Number
(218) 879-3321
NAIC Number
16330
Website
Largest Affiliates
No affiliate information available.