Major Rating Factors:
Weak profitability index (1.6 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 -8.5%. Good long-term capitalization index (6.7) based on excellent current risk adjusted capital (severe loss scenarios) reflecting significant improvement over results in 2023. Good overall results on stability tests (5.4) despite weak risk adjusted capital in prior years. Stability strengths include good operational trends and good risk diversification. The largest net exposure for one risk is conservative at 1.3% of capital.
Other Rating Factors:
Ample reserve history (8.3) that helps to protect the company against sharp claims increases. Good liquidity (6.9) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (85.1%), comm multi (9.6%), other (5.3%)
Licensed in:
TX
Principal Investments:
Investment grade bonds (90.6%), common stock (0.7%), other (8.7%)
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
Hochheim Prairie Farm Mutual Ins Association
Investment Rating
--
Company Address
500 US Highway 77A, South
Yoakum, TX 77995
Yoakum, TX 77995
Phone Number
(361) 293-5201
NAIC Number
36862
Website
Largest Affiliates