Major Rating Factors:
Good overall profitability index (6.9 on a scale of 0 to 10) with operating gains in each of the last five years. Excellent expense controls. Return on equity has been fair, averaging 7.6% over the past five years. Good overall results on stability tests (6.2) despite excessive premium growth. Strong long-term capitalization index (10.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios). Moreover, capital levels have been consistent in recent years.
Other Rating Factors:
Ample reserve history (7.0) that can protect against increases in claims costs. Superior liquidity (10.0) with ample operational cash flow and liquid investments.
Stability Factors:
A - Financial problems or weaknesses of a parent or affiliate company.
G - Fast asset or premium growth.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Homeowners (45.7%), personal/comm auto (20.4%), fire (15.1%), other (18.8%)
Licensed in:
All states
Principal Investments:
Investment grade bonds (94.4%), common stock (2.6%), cash (0.5%), other (2.6%)
Corporate Info
Group Affiliation
Farmers Ins Group of Companies
Investment Rating
--
Company Address
5600 Beech Tree Lane
Caledonia, MI 49316
Caledonia, MI 49316
Phone Number
(616) 942-3000
NAIC Number
11185
Website
Largest Affiliates