Direct Ins Co
Major Rating Factors:
Weak overall results on stability tests (0.0 on a scale of 0 to 10) including excessive premium growth, negative cash flow from operations for 2024 and fair risk adjusted capital in prior years. The largest net exposure for one risk is excessive at 143.4% of capital. Fair long-term capitalization index (4.5) based on fair current risk adjusted capital (severe loss scenarios), although results have slipped from the good range during the last year. Fair reserve development (3.6) as reserves have generally been sufficient to cover claims.
Other Rating Factors:
Good overall profitability index (5.1) with operating gains in each of the last five years. Excellent expense controls. Return on equity has been low, averaging 1.9% 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.
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
G - Fast asset or premium growth.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (99.8%), homeowners (0.2%)
Licensed in:
AR, NC, SC, TN
Principal Investments:
Investment grade bonds (93.4%), real estate (1.2%), other (5.4%)
Corporate Info
Group Affiliation
The Allstate Corporation
Investment Rating
Company Address
450 W. Hanes Mill Road
Winston-Salem, NC 27105
Winston-Salem, NC 27105
Phone Number
(800) 526-0332
NAIC Number
37220
Website
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