Major Rating Factors:
Fair reserve development (4.2 on a scale of 0 to 10) as the level of reserves has at times been insufficient to cover claims. In four of the last five years reserves (two year development) were between 19.0% and 24.1% deficient. Fair profitability index (3.1) with operating losses during 2020, 2021, 2022 and 2023. Average return on equity over the last five years has been poor at -8.2%. Fair long-term capitalization index (4.7) based on fair current risk adjusted capital (severe loss scenarios), although results have slipped from the good range during the last year.
Other Rating Factors:
Excellent liquidity (7.2) with ample operational cash flow and liquid investments. Excellent overall results on stability tests (7.6). Strengths include potentially strong support from affiliation with Auto-Owners Ins Group, good operational trends and excellent risk diversification.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (54.0%), comm multi (14.7%), work comp (1.3%), homeowners (0.9%), other (29.1%)
Licensed in:
FL, MI
Principal Investments:
Investment grade bonds (93.0%), common stock (3.9%), cash (1.8%), non investment grade bonds (0.3%), preferred stock (0.2%), other (0.8%)
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
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