Major Rating Factors:
Fair reserve development (4.3 on a scale of 0 to 10) as reserves have generally been sufficient to cover claims. Fair profitability index (4.2) with operating losses during 2020, 2021 and 2022. Average return on equity over the last five years has been poor at -2.1%. Weak overall results on stability tests (2.7) including weak risk diversification and fair risk adjusted capital in prior years. The largest net exposure for one risk is conservative at 1.6% of capital.
Other Rating Factors:
Good long-term capitalization index (5.4) based on good current risk adjusted capital (severe loss scenarios) reflecting significant improvement over results in 2022. Excellent liquidity (7.9) with ample operational cash flow and liquid investments.
Stability Factors:
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 (68.9%), farmowners (15.4%), fire (4.5%), other (11.3%)
Licensed in:
NC
Principal Investments:
Common stock (46.3%), cash (39.2%), investment grade bonds (8.5%), real estate (2.5%), preferred stock (0.4%), other (3.1%)
Corporate Info
Group Affiliation
None
Investment Rating
--
Company Address
114 Southwest Railroad Street
Enfield, NC 27823
Enfield, NC 27823
Phone Number
(252) 445-5101
NAIC Number
44377
Website
Largest Affiliates
No affiliate information available.