Major Rating Factors:
Fair profitability index (3.9 on a scale of 0 to 10). Excellent expense controls. Weak overall results on stability tests (2.9) including weak results on operational trends, weak risk adjusted capital in prior years and negative cash flow from operations for 2022. Strengths include potentially strong support from affiliation with Infinity Property & Casualty Group.
Other Rating Factors:
Poor long-term capitalization index (2.8) based on weak current risk adjusted capital (moderate loss scenario). Superior liquidity (10.0) with ample operational cash flow and liquid investments.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
G - Fast asset or premium growth.
Principal Lines of Business:
Personal/comm auto (100.0%)
Licensed in:
TX
Principal Investments:
Investment grade bonds (99.1%), other (0.9%)