Major Rating Factors:
Poor long-term capitalization index (2.4 on a scale of 0 to 10) based on weak current risk adjusted capital (severe loss scenarios), although results have slipped from the fair range during the last year. Weak overall results on stability tests (2.7) including weak risk diversification, negative cash flow from operations for 2025 and excessive premium growth. The largest net exposure for one risk is high at 3.5% of capital. A history of deficient reserves (3.0) that places pressure on both capital and profits. Deficiencies in the two year reserve development occurred in three of the previous five years and ranged between 18.5% and 22.2%.
Other Rating Factors:
Fair profitability index (2.9) with operating losses during 2023 and 2025. Excellent liquidity (7.4) with ample operational cash flow and liquid investments.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
R - Concerns about the financial strength of its reinsurers.
Principal Lines of Business:
Personal/comm auto (100.0%)
Licensed in:
AL
Principal Investments:
Common stock (49.2%), investment grade bonds (40.5%), cash (3.9%), other (6.4%)
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
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