Major Rating Factors:
Good long-term capitalization index (6.5 on a scale of 0 to 10) based on good current risk adjusted capital (severe loss scenarios). Moreover, capital has steadily grown over the last five years. Good overall profitability index (5.9) despite operating losses during 2019. Return on equity has been fair, averaging 5.5% over the past five years. Good liquidity (6.8) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Other Rating Factors:
Good overall results on stability tests (6.0) despite. The largest net exposure for one risk is high at 3.6% of capital. Other stability subfactors include potentially strong support from affiliation with Auto-Owners Ins Group, excellent operational trends, good risk adjusted capital for prior years and excellent risk diversification. Ample reserve history (7.0) that can protect against increases in claims costs.
Stability Factors:
Principal Lines of Business:
Comm multi (55.9%), personal/comm auto (15.2%), homeowners (9.1%), farmowners (5.6%), fire (2.3%), other (11.9%)
Licensed in:
AZ, CA, ID, MT, NM, NV, OR, UT, WA
Principal Investments:
Investment grade bonds (79.7%), cash (13.9%), common stock (5.1%), non investment grade bonds (0.2%), other (1.1%)
Corporate Info
Group Affiliation
Auto-Owners Ins Group
Investment Rating
--
Company Address
Building One
Monterey, CA 93940
Monterey, CA 93940
Phone Number
(831) 233-5500
NAIC Number
12890
Website
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