Major Rating Factors:
Fair overall results on stability tests (4.7 on a scale of 0 to 10) including negative cash flow from operations for 2024. The largest net exposure for one risk is excessive at 5.8% of capital. Strengths include potentially strong support from affiliation with Donegal Mutual Ins Co. Strong long-term capitalization index (8.9) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Ample reserve history (9.5) that helps to protect the company against sharp claims increases.
Other Rating Factors:
Excellent profitability index (7.4) with operating gains in each of the last five years. Return on equity has been good over the last five years, averaging 12.2%. Good liquidity (7.0) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Stability Factors:
F - Negative cash flow.
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (50.8%), homeowners (22.7%), work comp (11.4%), comm multi (10.4%), fire (1.3%), other (3.4%)
Licensed in:
DC, DE, GA, IA, IN, MD, ME, MI, NC, NE, NH, OH, PA, SC, TN, VA, VT, WI, WV
Principal Investments:
Investment grade bonds (91.1%), common stock (6.0%), cash (1.6%), non investment grade bonds (0.6%), other (0.7%)
Corporate Info
Group Affiliation
Donegal Mutual Ins Co
Investment Rating
--
Company Address
1195 River Road
Marietta, PA 17547
Marietta, PA 17547
Phone Number
(800) 877-0600
NAIC Number
14958
Website
Largest Affiliates