Major Rating Factors:
Good overall profitability index (5.3 on a scale of 0 to 10). Excellent expense controls. Return on equity has been low, averaging 2.0% over the past five years. Good overall results on stability tests (5.0) despite weak results on operational trends. Strengths include potential support from affiliation with American Family Ins Group.
Other Rating Factors:
Strong long-term capitalization index (10.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Superior liquidity (9.3) with ample operational cash flow and liquid investments.
Stability Factors:
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (100.0%)
Licensed in:
AZ, CO, ID, IL, IN, IA, KS, MN, MO, MT, NE, NV, NM, NC, ND, OH, OR, SC, SD, UT, WA, WI, WY
Principal Investments:
Investment grade bonds (98.8%), other (1.2%)