Major Rating Factors:
Poor long-term capitalization index (1.0 on a scale of 0 to 10) based on weak current risk adjusted capital (severe and moderate loss scenarios), although results have slipped from the good range during the last year. A history of deficient reserves (2.8) that places pressure on both capital and profits. In 2024 the one year reserve development was 21.6% deficient. Weak overall results on stability tests (0.0) including weak results on operational trends, weak risk diversification and lack of operational experience. The largest net exposure for one risk is excessive at 30.6% of capital.
Other Rating Factors:
Fair profitability index (4.8). Excellent liquidity (9.0) 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.
E - Lack of operating experience.
G - Fast asset or premium growth.
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 (99.2%), other (0.8%)
Licensed in:
AL
Principal Investments:
Common stock (73.8%), investment grade bonds (17.9%), cash (6.2%), other (2.0%)
Corporate Info
Group Affiliation
None
Investment Rating
--
Company Address
6317 Union Academy Ada Rd.
Hope Hull, AL 36043
Hope Hull, AL 36043
Phone Number
(469) 778-5445
NAIC Number
17417
Website
Largest Affiliates
No affiliate information available.