Major Rating Factors:
Good liquidity (6.7 on a scale of 0 to 10) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Fair overall results on stability tests (4.0) including weak results on operational trends and negative cash flow from operations for 2022.
Other Rating Factors:
Strong long-term capitalization index (7.8) based on excellent current risk adjusted capital (severe and moderate loss scenarios). Moreover, capital levels have been consistent in recent years. Ample reserve history (9.4) that helps to protect the company against sharp claims increases. Excellent profitability (8.4) despite modest operating losses during 2020.
Stability Factors:
F - Negative cash flow.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Homeowners (43.5%), personal/comm auto (40.9%), fire (4.0%), farmowners (2.4%), other (9.2%)
Licensed in:
MN, OH, WI
Principal Investments:
Investment grade bonds (79.0%), common stock (14.4%), cash (0.6%), other (6.0%)