Major Rating Factors:
Fair long-term capitalization index (4.0 on a scale of 0 to 10) based on fair current risk adjusted capital (severe loss scenarios). Fair reserve development (4.1) as the level of reserves has at times been insufficient to cover claims. In 2022 and 2024 the two year reserve development was 18.5% and 22.2% deficient respectively. Fair profitability index (3.4) with operating losses during 2023.
Other Rating Factors:
Weak overall results on stability tests (2.6) including excessive premium growth, weak risk diversification and fair risk adjusted capital in prior years. The largest net exposure for one risk is excessive at 7.1% of capital. Good liquidity (6.8) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
D - Limited diversification of general business, policy, and/or investment risk.
G - Fast asset or premium growth.
R - Concerns about the financial strength of its reinsurers.
Principal Lines of Business:
Personal/comm auto (100.0%)
Licensed in:
AL
Principal Investments:
Investment grade bonds (51.7%), common stock (30.7%), cash (10.8%), other (6.9%)
Corporate Info
Group Affiliation
None
Investment Rating
--
Company Address
6317 Union Academy Ada Road
Hope Hull, AL 36043
Hope Hull, AL 36043
Phone Number
(941) 373-1114
NAIC Number
16396
Website
Largest Affiliates
No affiliate information available.