Major Rating Factors:
Fair profitability index (4.5 on a scale of 0 to 10) with operating losses during 2022 and 2023. Return on equity has been low, averaging 0.1% over the past five years. Weak overall results on stability tests (2.9) including negative cash flow from operations for 2024. The largest net exposure for one risk is excessive at 10.7% of capital. History of adequate reserve strength (5.6) as reserves have been consistently at an acceptable level.
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 2022. Good liquidity (7.0) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (71.3%), homeowners (10.9%), farmowners (7.5%), comm multi (5.5%), fire (0.2%), other (4.5%)
Licensed in:
AZ, ND, NV, SD
Principal Investments:
Investment grade bonds (82.2%), common stock (17.8%)
Corporate Info
Group Affiliation
Nodak Mutual Group Inc
Investment Rating
--
Company Address
506 Fifth Street
Spearfish, SD 57783
Spearfish, SD 57783
Phone Number
(800) 925-8185
NAIC Number
11855
Website
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