Major Rating Factors:
Fair profitability index (3.5 on a scale of 0 to 10) with operating losses during 2021 and 2022. Average return on equity over the last five years has been poor at -1.8%. History of adequate reserve strength (5.3) as reserves have been consistently at an acceptable level. Good overall results on stability tests (5.5) despite negative cash flow from operations for 2024. Stability strengths include good operational trends, good risk adjusted capital for prior years and good risk diversification.
Other Rating Factors:
Strong long-term capitalization index (7.4) based on excellent current risk adjusted capital (severe and moderate loss scenarios) reflecting improvement over results in 2023. Excellent liquidity (7.9) with ample operational cash flow and liquid investments.
Stability Factors:
A - Financial problems or weaknesses of a parent or affiliate company.
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:
All states except AK, CT, DC, DE, HI, MA, MD, ME, MI, MN, NC, NH, NJ, NV, NY, OH, PA, RI, VT, WI, WV
Principal Investments:
Investment grade bonds (71.1%), cash (28.9%)
Corporate Info
Group Affiliation
Home State Ins Group Inc
Investment Rating
--
Company Address
4315 Lake Shore Drive
Waco, TX 76710
Waco, TX 76710
Phone Number
(254) 776-4521
NAIC Number
28746
Website
Largest Affiliates