Major Rating Factors:
Fair reserve development (3.6 on a scale of 0 to 10) as the level of reserves has at times been insufficient to cover claims. Deficiencies in the two year reserve development occurred in three of the previous five years and ranged between 19.0% and 22.6%. Strong long-term capitalization index (7.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios) reflecting improvement over results in 2023. Good liquidity (7.0) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Other Rating Factors:
Excellent overall results on stability tests (7.9). Strengths include potentially strong support from affiliation with Auto-Owners Ins Group, excellent operational trends, good risk adjusted capital for prior years and excellent risk diversification. Weak profitability index (2.9) with operating losses during 2020, 2021, 2022 and 2023. Average return on equity over the last five years has been poor at -7.8%.
Stability Factors:
Principal Lines of Business:
Personal/comm auto (53.9%), comm multi (14.7%), work comp (1.6%), homeowners (0.9%), other (28.8%)
Licensed in:
FL, MI
Principal Investments:
Investment grade bonds (92.4%), common stock (4.2%), cash (1.9%), non investment grade bonds (0.3%), preferred stock (0.2%), other (1.0%)
Corporate Info
Group Affiliation
Auto-Owners Ins Group
Investment Rating
--
Company Address
6101 Anacapri Boulevard
Lansing, MI 48917
Lansing, MI 48917
Phone Number
(517) 323-1200
NAIC Number
10190
Website
Largest Affiliates