Major Rating Factors:
Fair overall results on stability tests (4.0 on a scale of 0 to 10) including weak results on operational trends and negative cash flow from operations for 2022. History of adequate reserve strength (6.2) as reserves have been consistently at an acceptable level.
Other Rating Factors:
Good liquidity (6.5) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. 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. Excellent profitability (7.4) despite modest operating losses during 2022.
Stability Factors:
F - Negative cash flow.
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 (52.2%), homeowners (28.1%), farmowners (9.7%), comm multi (6.1%), fire (1.3%), other (2.6%)
Licensed in:
MN, WI
Principal Investments:
Investment grade bonds (81.0%), common stock (9.6%), non investment grade bonds (8.2%), real estate (0.5%), preferred stock (0.1%), other (0.6%)