Major Rating Factors:
Weak overall results on stability tests (1.0 on a scale of 0 to 10) including weak results on operational trends and negative cash flow from operations for 2023. The largest net exposure for one risk is excessive at 16.9% of capital. Good overall profitability index (6.0) despite operating losses during 2019, 2020 and the first nine months of 2024. Return on equity has been low, averaging 4.0% over the past five years. Good liquidity (6.3) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Other Rating Factors:
Strong long-term capitalization index (7.7) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Ample reserve history (9.3) that helps to protect the company against sharp claims increases.
Stability Factors:
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:
Personal/comm auto (50.6%), work comp (10.9%), homeowners (7.4%), product liab. (4.8%), fire (3.6%), fin guar/surety (0.8%), comm multi (0.4%), other (21.6%)
Licensed in:
AZ, CA, CO, ID, NM, NV, OR, UT
Principal Investments:
Investment grade bonds (97.8%), other (2.2%)
Corporate Info
Group Affiliation
Southlake Financial Holdings LLC
Investment Rating
--
Company Address
1301 Solana Boulevard
Westlake, TX 76262
Westlake, TX 76262
Phone Number
(800) 373-2910
NAIC Number
10007
Website
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