Major Rating Factors:
Good profitability index (5.0 on a scale of 0 to 10) with operating gains in each of the last five years. Return on equity has been low, averaging 2.8% over the past five years. Fair overall results on stability tests (4.3) including negative cash flow from operations for 2023. Strengths include potentially strong support from affiliation with Lititz Mutual Ins Co. Strong long-term capitalization index (8.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels.
Other Rating Factors:
Ample reserve history (9.2) that helps to protect the company against sharp claims increases. Excellent liquidity (8.7) with ample operational cash flow and liquid investments.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
R - Concerns about the financial strength of its reinsurers.
Principal Lines of Business:
Homeowners (48.2%), fire (32.5%), farmowners (3.9%), other (15.5%)
Licensed in:
PA
Principal Investments:
Common stock (70.6%), investment grade bonds (19.9%), cash (4.0%), other (5.5%)
Corporate Info
Group Affiliation
Lititz Mutual Ins Co
Investment Rating
--
Company Address
Two North Broad Street
Lititz, PA 17543
Lititz, PA 17543
Phone Number
(717) 626-4751
NAIC Number
17086
Website
Largest Affiliates