Major Rating Factors:
Fair reserve development (4.1 on a scale of 0 to 10) as reserves have generally been sufficient to cover claims. Good overall results on stability tests (6.0) despite excessive premium growth and lack of operational experience. Stability strengths include good operational trends and excellent risk diversification. Strong long-term capitalization index (7.7) based on excellent current risk adjusted capital (severe and moderate loss scenarios). Moreover, capital levels have been consistent in recent years.
Other Rating Factors:
Excellent profitability index (8.2) with small operating losses during 2023. Excellent expense controls. Excellent liquidity (8.8) with ample operational cash flow and liquid investments.
Stability Factors:
E - Lack of operating experience.
G - Fast asset or premium growth.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (86.9%), fire (8.3%), homeowners (2.8%), comm multi (0.2%), other (1.8%)
Licensed in:
(No states)
Principal Investments:
Common stock (70.0%), cash (14.8%), investment grade bonds (14.5%), other (0.7%)
Corporate Info
Group Affiliation
Merfax Financial Group LLC
Investment Rating
--
Company Address
13215 Bee Cave Parkway
Austin, TX 78738
Austin, TX 78738
Phone Number
(737) 615-4700
NAIC Number
17532
Website
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