Major Rating Factors:
Good overall results on stability tests (5.2 on a scale of 0 to 10) despite. Strengths include potentially strong support from affiliation with Farmers Alliance Mutual Ins Co. Fair profitability index (3.8) with operating losses during 2023. Return on equity has been low, averaging 1.1% over the past five years. Strong long-term capitalization index (7.7) 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. Good liquidity (6.9) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Homeowners (41.8%), farmowners (31.6%), personal/comm auto (20.6%), comm multi (3.5%), fire (0.1%), other (2.4%)
Licensed in:
CO, ID, KS, MO, MT, ND, NE, SD
Principal Investments:
Investment grade bonds (96.4%), cash (1.9%), other (1.7%)
Corporate Info
Group Affiliation
Farmers Alliance Mutual Ins Co
Investment Rating
--
Company Address
1122 North Main Street
McPherson, KS 67460
McPherson, KS 67460
Phone Number
(620) 241-2200
NAIC Number
19186
Website
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