Merchants Bonding Co (Mutual)
Major Rating Factors:
Strong long-term capitalization index (9.1 on a scale of 0 to 10) based on excellent current risk adjusted capital (severe and moderate loss scenarios). Furthermore, this high level of risk adjusted capital has been consistently maintained in previous years. Ample reserve history (8.1) that helps to protect the company against sharp claims increases. Excellent profitability index (8.6) with operating gains in each of the last five years. Return on equity has been good over the last five years, averaging 10.3%.
Other Rating Factors:
Excellent liquidity (7.4) with ample operational cash flow and liquid investments. Fair overall results on stability tests (3.5) including. The largest net exposure for one risk is excessive at 8.8% of capital.
Stability Factors:
L - Past results on our liquidity tests.
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Fin guar/surety (96.8%), other (3.2%)
Licensed in:
All states
Principal Investments:
Investment grade bonds (68.0%), common stock (21.5%), real estate (2.6%), cash (0.3%), other (7.6%)
Corporate Info
Group Affiliation
Merchants Bonding Co (Mutual)
Investment Rating
--
Company Address
6700 Westown Parkway
West Des Moines, IA 50266
West Des Moines, IA 50266
Phone Number
(515) 243-8171
NAIC Number
14494
Website
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