Major Rating Factors:
Weak overall results on stability tests (1.9 on a scale of 0 to 10) including weak financial strength of affiliated Farmers Insurance Group of Companies, weak results on operational trends and negative cash flow from operations for 2022. History of adequate reserve strength (5.0) as reserves have been consistently at an acceptable level.
Other Rating Factors:
Good overall profitability index (5.3). Good expense controls. Return on equity has been low, averaging 1.4% over the past five years. Strong long-term capitalization index (10.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Superior liquidity (10.0) with ample operational cash flow and liquid investments.
Stability Factors:
F - Negative cash flow.
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 (100.0%)
Licensed in:
All states except AK, CA, MA, MI, MN, MS, NV, NJ, NY, NC, TX, WA, WY, PR
Principal Investments:
Investment grade bonds (91.2%), cash (8.8%)
Corporate Info
Group Affiliation
Farmers Insurance Group of Companies
Investment Rating
--
Company Address
6111 Oak Tree Boulevard Suite
INDEPENDENCE, OH 44131
INDEPENDENCE, OH 44131
Phone Number
(888) 888-0080
NAIC Number
19658
Website
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