Major Rating Factors:
A history of deficient reserves (1.0 on a scale of 0 to 10). Underreserving can have an adverse impact on capital and profits. In the last five years, reserves (two year development) fluctuated between 31.2% and 90.1% deficient. Weak profitability index (1.6) with operating losses during 2021, 2022, 2024 and 2025. Weak overall results on stability tests (1.0) including weak results on operational trends, weak risk diversification and negative cash flow from operations for 2025. The largest net exposure for one risk is excessive at 20.3% of capital.
Other Rating Factors:
Good long-term capitalization index (6.0) based on fair current risk adjusted capital (moderate loss scenarios), although results have slipped from the good range during the last year. Excellent liquidity (7.9) 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.
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Fin guar/surety (80.9%), other (19.1%)
Licensed in:
AL, GA, IN, KY, MS, OK, SC, TN
Principal Investments:
Investment grade bonds (80.1%), common stock (9.1%), cash (3.6%), other (7.2%)
Corporate Info
Group Affiliation
None
Investment Rating
--
Company Address
1111 Hillcrest Road
Mobile, AL 36695
Mobile, AL 36695
Phone Number
(251) 639-2227
NAIC Number
41300
Website
Largest Affiliates
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