Major Rating Factors:
Fair long-term capitalization index (3.5 on a scale of 0 to 10) based on fair current risk adjusted capital (severe and moderate loss scenarios), although results have slipped from the excellent range over the last two years. Fair reserve development (3.1) as reserves have generally been sufficient to cover claims. In 2024 the two year reserve development was 45.5% deficient. Fair overall results on stability tests (3.8) including weak results on operational trends and weak risk adjusted capital in prior years.
Other Rating Factors:
Good overall profitability index (5.7) with operating gains in each of the last five years. Return on equity has been low, averaging 4.8% over the past five years. Excellent liquidity (7.2) with ample operational cash flow and liquid investments.
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 (67.9%), comm multi (10.3%), homeowners (6.3%), work comp (6.2%), fire (0.3%), other (8.9%)
Licensed in:
All states except KS, NY
Principal Investments:
Cash (54.1%), investment grade bonds (4.0%), other (41.9%)
Corporate Info
Group Affiliation
Merfax Financial Group LLC
Investment Rating
--
Company Address
13215 Bee Cave Parkway
Austin, TX 78738
Austin, TX 78738
Phone Number
(737) 615-4700
NAIC Number
11090
Website
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