Major Rating Factors:
Fair profitability index (3.9 on a scale of 0 to 10) with operating losses during 2020, 2021, 2022, 2023 and the first three months of 2025. Average return on equity over the last five years has been poor at -1.8%. Good liquidity (6.8) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Good overall results on stability tests (6.6) despite. Stability strengths include excellent operational trends, good risk adjusted capital for prior years and excellent risk diversification.
Other Rating Factors:
Strong long-term capitalization index (7.3) based on excellent current risk adjusted capital (severe and moderate loss scenarios) reflecting improvement over results in 2023. Ample reserve history (9.2) that helps to protect the company against sharp claims increases.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (87.3%), homeowners (8.9%), comm multi (1.2%), farmowners (1.1%), fire (0.1%), other (1.4%)
Licensed in:
AL, AR, GA, IN, KY, MO, MS, OH, TN, TX, VA
Principal Investments:
Investment grade bonds (73.3%), common stock (16.7%), cash (3.1%), preferred stock (1.8%), other (5.2%)
Corporate Info
Group Affiliation
Alfa Mutual Group
Investment Rating
--
Company Address
4037 Rural Plains Circle
Franklin, TN 37064
Franklin, TN 37064
Phone Number
(334) 288-3900
NAIC Number
11004
Website
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