Major Rating Factors:
Poor long-term capitalization index (0.6 on a scale of 0 to 10) based on weak current risk adjusted capital (severe and moderate loss scenarios), although results have slipped from the fair range during the last year. Weak profitability index (0.8) with operating losses during 2021, 2022, 2023 and the first nine months of 2024. Average return on equity over the last five years has been poor at -31.6%. Vulnerable liquidity (0.0) as a spike in claims may stretch capacity.
Other Rating Factors:
Weak overall results on stability tests (2.6) including weak risk adjusted capital in prior years and negative cash flow from operations for 2023. The largest net exposure for one risk is excessive at 12.1% of capital. Strengths include potentially strong support from affiliation with Auto Club Exchange Group. Fair reserve development (3.4) as the level of reserves has at times been insufficient to cover claims. In 2023 the two year reserve development was 18.3% deficient.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
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 (92.5%), homeowners (6.8%), fire (0.2%), other (0.5%)
Licensed in:
CA, NV, OR
Principal Investments:
Investment grade bonds (77.6%), non investment grade bonds (8.3%), cash (6.6%), other (7.5%)
Corporate Info
Group Affiliation
Auto Club Exchange Group
Investment Rating
--
Company Address
8954 Rio San Diego Drive
San Diego, CA 92108
San Diego, CA 92108
Phone Number
(858) 874-5339
NAIC Number
10683
Website
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