Major Rating Factors:
Fair profitability index (3.2 on a scale of 0 to 10) with operating losses during 2021, 2022, 2023, 2024 and the first three months of 2025. Average return on equity over the last five years has been poor at -4.6%. Fair overall results on stability tests (3.7) including weak results on operational trends and fair risk adjusted capital in prior years. The largest net exposure for one risk is conservative at 1.8% of capital. Good long-term capitalization index (5.1) based on good current risk adjusted capital (severe loss scenarios), although results have slipped from the excellent range during the last year.
Other Rating Factors:
Ample reserve history (9.2) that helps to protect the company against sharp claims increases. Superior liquidity (10.0) with ample operational cash flow and liquid investments.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
G - Fast asset or premium growth.
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Homeowners (41.5%), personal/comm auto (17.8%), fire (12.0%), work comp (3.1%), comm multi (1.9%), other (23.8%)
Licensed in:
All states except CA, NY
Principal Investments:
Investment grade bonds (73.0%), cash (18.7%), common stock (3.5%), other (4.8%)
Corporate Info
Group Affiliation
McCarthy Partners Management LLC
Investment Rating
--
Company Address
6031 Connection Drive
Irving, TX 75039
Irving, TX 75039
Phone Number
(469) 357-9300
NAIC Number
15474
Website
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