Major Rating Factors:
Poor long-term capitalization index (1.1 on a scale of 0 to 10) based on weak current risk adjusted capital (severe and moderate loss scenarios), although results have slipped from the fair range over the last two years. A history of deficient reserves (0.6) that places pressure on both capital and profits. In the last five years, reserves (two year development) fluctuated between 102% and 69% deficeint.
Other Rating Factors:
Weak profitability index (2.6) with operating losses during 2018, 2021 and 2022. Average return on equity over the last five years has been poor at -19.0%. Weak overall results on stability tests (0.6) including excessive premium growth, weak risk adjusted capital in prior years and weak results on operational trends. The largest net exposure for one risk is excessive at 7.0% of capital. Fair liquidity (4.7) as cash resources may not be adequate to cover a spike in claims.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
D - Limited diversification of general business, policy, and/or investment risk.
G - Fast asset or premium growth.
L - Past results on our liquidity tests.
Principal Lines of Business:
Personal/comm auto (67.6%), comm multi (19.8%), homeowners (10.7%), product liab. (0.9%), other (1.0%)
Licensed in:
All states except CA, NY, UT, PR
Principal Investments:
Investment grade bonds (63.5%), common stock (8.5%), cash (5.0%), other (23.0%)
Corporate Info
Group Affiliation
Producers National Corp
Investment Rating
--
Company Address
7400 N CALDWELL AVENUE
NILES, IL 60714
NILES, IL 60714
Phone Number
(773) 299-7520
NAIC Number
14012
Website
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