D
TOWER HILL PREFERRED INS CO
Rating Date
December 2023
NAIC
Classification
Risk Adjusted
Capital Ratio #1
Risk Adjusted
Capital Ratio #2
Loss
Ratio
Total
Assets
Capital
Net
Premiums
Net
Income
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Major Rating Factors: Weak profitability index (0.8 on a scale of 0 to 10) with operating losses during each of the last five years. Average return on equity over the last five years has been poor at -23.8%. Vulnerable liquidity (0.9) as a spike in claims may stretch capacity.
Other Rating Factors: Weak overall results on stability tests (1.3) including weak financial strength of affiliated Tower Hill Group, weak results on operational trends and negative cash flow from operations for 2022. The largest net exposure for one risk is acceptable at 3.0% of capital. Fair long-term capitalization index (3.2) based on fair current risk adjusted capital (moderate loss scenario). Fair reserve development (4.1) as reserves have generally been sufficient to cover claims.
Stability Factors: D - Limited diversification of general business, policy, and/or investment risk. F - Negative cash flow. L - Past results on our liquidity tests. R - Concerns about the financial strength of its reinsurers.
Principal Lines of Business: Homeowners (93.9%), fire (1.3%), other (4.7%)
Licensed in: FL
Principal Investments: Investment grade bonds (61.2%), non investment grade bonds (2.0%), common stock (0.2%), other (36.7%)
Ratios
Premium to Surplus
Reserve to Surplus
1-Year Reserve Development
2-Year Reserve Development
Expense Ratio
Combined Ratio
Cash From Underwriting
Net Premium Growth
Investments in Affiliates
Corporate Info
Group Affiliation
Tower Hill Group
Investment Rating
--
Company Address
7201 Nw 11th Place
GAINESVILLE, FL 32605
Phone Number
(352) 333-1426
NAIC Number
29050
Largest Affiliates
A
GAINESVILLE, FL - P&C
D
GAINESVILLE, FL - P&C
D
GAINESVILLE, FL - P&C
Weiss Ratings