Major Rating Factors:
Poor long-term capitalization index (0.6 on a scale of 0 to 10) based on weak current risk adjusted capital (severe and moderate loss scenarios). Weak overall results on stability tests (1.9) including weak risk adjusted capital in prior years, weak risk diversification and negative cash flow from operations for 2023. The largest net exposure for one risk is conservative at 1.9% of capital. Fair reserve development (3.6) as reserves have generally been sufficient to cover claims.
Other Rating Factors:
Excellent overall profitability index (7.0) with operating gains in each of the last five years. Excellent expense controls. Return on equity has been low, averaging 0.4% over the past five years. Excellent liquidity (7.0) with ample operational cash flow and liquid investments.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
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:
TX
Principal Investments:
Investment grade bonds (94.0%), cash (6.0%)
Corporate Info
Group Affiliation
None
Investment Rating
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Company Address
10000 North Central Expressway
Dallas, TX 75231
Dallas, TX 75231
Phone Number
(972) 559-2200
NAIC Number
29246
Website
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Largest Affiliates
No affiliate information available.