Major Rating Factors:
Weak profitability index (1.6 on a scale of 0 to 10) with operating losses during 2022 and 2023. Average return on equity over the last five years has been poor at -14.8%. Fair reserve development (4.4) as reserves have generally been sufficient to cover claims. In 2024 the one year reserve development was 15.8% deficient. Fair overall results on stability tests (3.7) including fair risk adjusted capital in prior years. The largest net exposure for one risk is excessive at 8.3% of capital. Strengths include potentially strong support from affiliation with Rural Mutual Ins Co.
Other Rating Factors:
Good long-term capitalization index (5.6) based on good current risk adjusted capital (severe loss scenarios) reflecting some improvement over results in 2023. Good liquidity (6.4) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Stability Factors:
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Homeowners (35.9%), comm multi (32.0%), personal/comm auto (28.2%), work comp (1.9%), fire (0.9%), other (1.2%)
Licensed in:
AZ, IA, ID, IL, MI, MN, NV, UT, WI, WY
Principal Investments:
Investment grade bonds (84.0%), non investment grade bonds (2.9%), common stock (2.2%), cash (0.4%), preferred stock (0.2%), other (10.4%)
Corporate Info
Group Affiliation
Rural Mutual Ins Co
Investment Rating
--
Company Address
1134 North Ninth Street
Milwaukee, WI 53223
Milwaukee, WI 53223
Phone Number
(414) 383-1234
NAIC Number
13420
Website
Largest Affiliates