Major Rating Factors:
Fair overall results on stability tests (3.8 on a scale of 0 to 10) including potential drain of affiliation with Hilltop Holdings Inc and weak results on operational trends. The largest net exposure for one risk is conservative at 1.4% of capital. Fair profitability index (3.8) with operating losses during 2018, 2021 and 2022. Average return on equity over the last five years has been poor at -1.0%.
Other Rating Factors:
Good liquidity (6.9) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Strong long-term capitalization index (7.2) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Ample reserve history (7.5) that can protect against increases in claims costs.
Stability Factors:
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (55.5%), homeowners (36.4%), fire (2.4%), other (5.7%)
Licensed in:
All states except MI, NY, WA, PR
Principal Investments:
Common stock (63.4%), investment grade bonds (26.8%), cash (9.5%), non investment grade bonds (0.1%), other (0.3%)
Corporate Info
Group Affiliation
Hilltop Holdings Inc
Investment Rating
--
Company Address
325 N St Paul St #900
DALLAS, TX 75201
DALLAS, TX 75201
Phone Number
(254) 981-7178
NAIC Number
19623
Website
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