Major Rating Factors:
Poor long-term capitalization index (2.2 on a scale of 0 to 10) based on weak current risk adjusted capital (severe loss scenarios), although results have slipped from the excellent range during the last year. A history of deficient reserves (0.7) that places pressure on both capital and profits. In the last five years, reserves (two year development) fluctuated between 31.2% and 90.1% deficient. Weak profitability index (1.4) with operating losses during 2020, 2021, 2022, 2024 and the first six months of 2025. Average return on equity over the last five years has been poor at -23.9%.
Other Rating Factors:
Weak overall results on stability tests (0.1) including weak results on operational trends, weak risk diversification and negative cash flow from operations for 2024. The largest net exposure for one risk is excessive at 28.0% of capital. Superior liquidity (9.2) 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 (101.8%), fire (1.2%)
Licensed in:
AL, GA, IN, KY, MS, OK, SC, TN
Principal Investments:
Investment grade bonds (74.0%), cash (18.2%), common stock (6.4%), other (1.3%)
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
No affiliate information available.