Major Rating Factors:
Vulnerable liquidity (1.7 on a scale of 0 to 10) as a spike in claims may stretch capacity. Weak overall results on stability tests (1.7) including weak results on operational trends and negative cash flow from operations for 2024. The largest net exposure for one risk is excessive at 16.7% of capital. Good overall profitability index (5.4) despite operating losses during 2020 and 2024.
Other Rating Factors:
Strong long-term capitalization index (9.3) 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.
L - Past results on our liquidity tests.
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
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