D
Discovery Ins Co
KinstonNC
Rating Date
June 2025
NAIC
Classification
Risk Adjusted
Capital Ratio #1
Risk Adjusted
Capital Ratio #2
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Major Rating Factors: Weak profitability index (2.3 on a scale of 0 to 10) with operating losses during 2022 and 2023. Average return on equity over the last five years has been poor at -13.1%. Fair long-term capitalization index (4.2) based on fair current risk adjusted capital (severe loss scenarios), although results have slipped from the good range during the last year. Fair overall results on stability tests (2.9) including negative cash flow from operations for 2024.
Other Rating Factors: History of adequate reserve strength (6.7) as reserves have been consistently at an acceptable level. Good liquidity (6.6) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
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. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Personal/comm auto (100.0%)
Licensed in: NC
Principal Investments: Investment grade bonds (58.0%), cash (21.4%), common stock (16.9%), real estate (2.7%), other (1.0%)
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Investments in Affiliates
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Corporate Info
Group Affiliation
None
Investment Rating
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Company Address
604 North Queen Street
Kinston, NC 28501
Phone Number
(252) 523-1200
NAIC Number
22635
Largest Affiliates
No affiliate information available.