FOREMOST INS CO
Major Rating Factors:
Good overall results on stability tests (5.0 on a scale of 0 to 10) despite potential drain of affiliation with Farmers Insurance Group of Companies and weak results on operational trends. History of adequate reserve strength (5.0) as reserves have been consistently at an acceptable level.
Other Rating Factors:
Good overall profitability index (6.9). Weak expense controls. Return on equity has been low, averaging 3.2% over the past five years. 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. Superior liquidity (9.5) with ample operational cash flow and liquid investments.
Stability Factors:
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Homeowners (43.0%), fire (19.3%), personal/comm auto (16.3%), other (21.4%)
Licensed in:
All states except PR
Principal Investments:
Investment grade bonds (93.4%), common stock (3.6%), real estate (0.4%), non investment grade bonds (0.2%), other (2.3%)