Major Rating Factors:
Weak profitability index (2.7) with modest operating losses during 2022. Return on equity has been low, averaging 2.0% over the past five years.
Other Rating Factors:
Vulnerable liquidity (0.0) as a spike in claims may stretch capacity. Weak overall results on stability tests (1.0) including weak financial strength of affiliated American Family Ins Group, weak results on operational trends and negative cash flow from operations for 2022. Good overall long-term capitalization (5.0) based on good current risk adjusted capital (severe and moderate loss scenarios). However, capital levels have fluctuated during prior years.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
G - Fast asset or premium growth.
L - Past results on our liquidity tests.
Principal Lines of Business:
Comm multi (27.7%), personal/comm auto (27.4%), work comp (7.1%), farmowners (0.7%), other (37.1%)
Licensed in:
All states except PR
Principal Investments:
Investment grade bonds (65.2%), cash (29.5%), other (5.3%)
Corporate Info
Group Affiliation
American Family Ins Group
Investment Rating
--
Company Address
6000 American Parkway
MADISON, WI 53783
MADISON, WI 53783
Phone Number
(608) 249-2111
NAIC Number
27138
Website
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