Major Rating Factors:
Good overall profitability index (6.6 on a scale of 0 to 10). Excellent expense controls. Return on equity has been low, averaging 2.5% over the past five years. Fair overall results on stability tests (4.0) including weak results on operational trends.
Other Rating Factors:
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. Vulnerable liquidity (2.9) as a spike in claims may stretch capacity.
Stability Factors:
L - Past results on our liquidity tests.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (60.5%), homeowners (28.3%), comm multi (8.6%), farmowners (1.8%), other (0.8%)
Licensed in:
AZ, CO, GA, ID, IL, IN, IA, KS, MN, MO, NE, NV, ND, OH, OR, SD, UT, WA, WI
Principal Investments:
Cash (86.3%), investment grade bonds (13.6%)