Major Rating Factors: History of adequate reserve strength (6.7 on a scale of 0 to 10) as reserves have been consistently at an acceptable level. Good liquidity (5.8) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Other Rating Factors: Fair profitability index (3.7) with operating losses during the first six months of 2022. Return on equity has been low, averaging 2.3% over the past five years. Fair overall results on stability tests (4.5). Strong long-term capitalization index (7.6) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels.
Stability Factors: T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Personal/comm auto (45.2%), homeowners (39.5%), comm multi (6.9%), farmowners (2.9%), acc & health (0.6%), work comp (0.4%), other (4.6%)
Licensed in: AZ, CO, FL, GA, ID, IL, IN, IA, KS, MN, MO, MT, NE, NV, NM, NC, ND, OH, OR, SC, SD, TN, TX, UT, VA, WA, WI, WY
Principal Investments: Investment grade bonds (55.7%), common stock (24.2%), non investment grade bonds (7.1%), real estate (0.9%), other (12.1%)