Major Rating Factors:
Fair reserve development (3.6 on a scale of 0 to 10) as reserves have generally been sufficient to cover claims. Weak overall results on stability tests (2.1) including excessive premium growth and weak results on operational trends. The largest net exposure for one risk is excessive at 13.4% of capital. Good overall profitability index (5.0) despite operating losses during 2020 and 2022. Excellent expense controls. Return on equity has been low, averaging 1.0% over the past five years.
Other Rating Factors:
Strong long-term capitalization index (10.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Good liquidity (6.9) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Stability Factors:
A - Financial problems or weaknesses of a parent or affiliate company.
D - Limited diversification of general business, policy, and/or investment risk.
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:
Fire (3.7%), personal/comm auto (0.5%), comm multi (0.3%), product liab. (0.1%), other (95.4%)
Licensed in:
(No states)
Principal Investments:
Investment grade bonds (86.1%), cash (10.7%), non investment grade bonds (0.4%), other (2.8%)
Corporate Info
Group Affiliation
Palomar Holdings Inc
Investment Rating
Company Address
3601 West 76th Street
Edina, MN 55435
Edina, MN 55435
Phone Number
(952) 209-1786
NAIC Number
16754
Website
Largest Affiliates