B
FHM Ins Co
Rating Date
June 2025
NAIC
Classification
Risk Adjusted
Capital Ratio #1
Risk Adjusted
Capital Ratio #2
Loss
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Premiums
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Major Rating Factors: Fair profitability index (3.3 on a scale of 0 to 10) with operating losses during 2020, 2021, 2023, 2024 and the first three months of 2025. Average return on equity over the last five years has been poor at -7.6%. History of adequate reserve strength (6.3) as reserves have been consistently at an acceptable level. Good overall results on stability tests (5.5) despite negative cash flow from operations for 2024. Other stability subfactors include potentially strong support from affiliation with LUBA Ins Group, good operational trends and excellent risk diversification.
Other Rating Factors: Strong long-term capitalization index (7.4) based on excellent current risk adjusted capital (severe and moderate loss scenarios) reflecting improvement over results in 2020. Excellent liquidity (7.9) with ample operational cash flow and liquid investments.
Stability Factors: D - Limited diversification of general business, policy, and/or investment risk. F - Negative cash flow. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Work comp (100.0%)
Licensed in: AL, FL, GA, KY, NC, SC, VA
Principal Investments: Investment grade bonds (92.2%), cash (2.7%), other (5.1%)
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Investments in Affiliates
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Corporate Info
Group Affiliation
LUBA Ins Group
Investment Rating
--
Company Address
2351 Energy Drive
Baton Rouge, LA 70808
Phone Number
(225) 389-5822
NAIC Number
10699
Largest Affiliates
A
Baton Rouge, LA - P&C
B
Baton Rouge, LA - P&C