Major Rating Factors:
Weak overall results on stability tests (2.6 on a scale of 0 to 10) including weak results on operational trends and negative cash flow from operations for 2024. The largest net exposure for one risk is excessive at 8.4% of capital. Good overall profitability index (5.4) despite operating losses during 2020 and 2024. Return on equity has been low, averaging 3.7% over the past five years. Strong long-term capitalization index (10.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels.
Other Rating Factors:
Ample reserve history (9.3) that helps to protect the company against sharp claims increases. Excellent liquidity (7.0) with ample operational cash flow and liquid investments.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
G - Fast asset or premium growth.
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 (126.4%), work comp (32.7%), product liab. (11.8%)
Licensed in:
AZ, CA, CO, ID, NM, NV, OR, UT
Principal Investments:
Investment grade bonds (29.7%), other (70.3%)
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
Largest Affiliates