Major Rating Factors:
Fair reserve development (4.2 on a scale of 0 to 10) as reserves have generally been sufficient to cover claims. In 2023 the one year reserve development was 23.2% deficient. Fair profitability index (3.1) with operating losses during 2023. Return on equity has been low, averaging 0.4% over the past five years. Weak overall results on stability tests (2.5) including weak risk diversification, weak results on operational trends and negative cash flow from operations for 2023. The largest net exposure for one risk is excessive at 7.9% of capital.
Other Rating Factors:
Good long-term capitalization index (5.5) based on good current risk adjusted capital (severe loss scenarios) reflecting some improvement over results in 2023. Excellent liquidity (7.0) with ample operational cash flow and liquid investments.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
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 (100.0%)
Licensed in:
AL
Principal Investments:
Investment grade bonds (90.2%), common stock (5.7%), cash (4.1%)
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.