Major Rating Factors: Fair overall results on stability tests (3.9 on a scale of 0 to 10). Good overall profitability index (6.5) despite modest operating losses during the first nine months of 2020. Return on equity has been low, averaging 2.5% over the past five years.
Other Rating Factors: Good liquidity (6.5) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Strong long-term capitalization index (9.9) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Ample reserve history (7.9) that can protect against increases in claims costs.
Stability Factors: T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Personal/comm auto (100.0%)
Licensed in: AL, AZ, AR, IN, KY, MO, NV, OH, SC, TN, TX, UT, VA, WA, WI
Principal Investments: Investment grade bonds (51.9%), common stock (15.8%), cash (6.3%), non investment grade bonds (2.9%), preferred stock (0.5%), other (22.6%)