Major Rating Factors:
Fair profitability index (3.5 on a scale of 0 to 10) with operating losses during 2021, 2022, 2023 and 2024. Good long-term capitalization index (6.3) based on good current risk adjusted capital (severe loss scenarios), although results have slipped from the excellent range during the last year. Good liquidity (6.4) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Other Rating Factors:
History of adequate reserve strength (6.9) as reserves have been consistently at an acceptable level. Excellent overall results on stability tests (6.9) despite excessive premium growth, lack of operational experience and fair risk adjusted capital in prior years. Stability strengths include good operational trends and excellent risk diversification.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
E - Lack of operating experience.
G - Fast asset or premium growth.
Principal Lines of Business:
Homeowners (79.6%), fire (17.3%), comm multi (3.1%)
Licensed in:
AL, LA, MS, NC, SC, TX
Principal Investments:
Investment grade bonds (85.5%), cash (1.0%), non investment grade bonds (0.1%), other (13.4%)
Corporate Info
Group Affiliation
Novel Financial Holdings LLC
Investment Rating
--
Company Address
Three Chasewood
Houston, TX 77070
Houston, TX 77070
Phone Number
(850) 364-1126
NAIC Number
17030
Website
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