Major Rating Factors:
Weak profitability index (1.9 on a scale of 0 to 10) with operating losses during 2021, 2022 and 2023. Average return on equity over the last five years has been poor at -16.8%. Weak overall results on stability tests (2.8) including weak risk diversification and fair risk adjusted capital in prior years. The largest net exposure for one risk is excessive at 7.0% of capital. Fair long-term capitalization index (3.4) based on fair current risk adjusted capital (severe loss scenarios), although results have slipped from the excellent range over the last two years.
Other Rating Factors:
Good liquidity (6.7) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. History of adequate reserve strength (6.9) as reserves have been consistently at an acceptable level.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
D - Limited diversification of general business, policy, and/or investment risk.
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Homeowners (69.0%), fire (16.1%), farmowners (2.9%), comm multi (1.1%), other (11.0%)
Licensed in:
KY, TN
Principal Investments:
Investment grade bonds (74.7%), cash (11.7%), real estate (7.7%), preferred stock (1.1%), common stock (0.7%), other (4.1%)
Corporate Info
Group Affiliation
None
Investment Rating
--
Company Address
837 North Hall of Fame Drive
Knoxville, TN 37917
Knoxville, TN 37917
Phone Number
(865) 523-5153
NAIC Number
30651
Website
Largest Affiliates
No affiliate information available.