Major Rating Factors:
Poor long-term capitalization index (1.2 on a scale of 0 to 10) based on weak current risk adjusted capital (severe and moderate loss scenarios). A history of deficient reserves (1.8) that places pressure on both capital and profits. In the last five years, reserves (two year development) fluctuated between 24.4% and 69.9% deficient. Weak profitability index (2.5) with operating losses during 2021, 2022, 2023 and 2024.
Other Rating Factors:
Fair liquidity (4.7) as cash resources may not be adequate to cover a spike in claims. Fair overall results on stability tests (4.0) including excessive premium growth, weak risk adjusted capital in prior years and negative cash flow from operations for 2024. The largest net exposure for one risk is conservative at 1.6% of capital.
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 (73.5%), homeowners (17.6%), comm multi (8.6%), product liab. (0.2%), other (0.1%)
Licensed in:
AZ, IL
Principal Investments:
Investment grade bonds (51.2%), common stock (15.0%), cash (3.4%), other (30.5%)
Corporate Info
Group Affiliation
Producers National Corporation
Investment Rating
--
Company Address
8725 W. Higgins Road
Chicago, IL 60631
Chicago, IL 60631
Phone Number
(773) 458-1055
NAIC Number
14012
Website
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