Major Rating Factors:
Good liquidity (5.1 on a scale of 0 to 10) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Fair overall results on stability tests (4.9) including potential drain of affiliation with Automobile Club of Michigan Group, weak results on operational trends and negative cash flow from operations for 2022.
Other Rating Factors:
Fair profitability index (4.9) with operating losses during 2022. Strong long-term capitalization index (8.5) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Ample reserve history (8.3) that helps to protect the company against sharp claims increases.
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:
Homeowners (58.2%), personal/comm auto (40.5%), other (1.2%)
Licensed in:
CA, IL, MI, MN, NE, NY, ND, PA, WI
Principal Investments:
Common stock (31.5%), investment grade bonds (23.8%), non investment grade bonds (3.6%), real estate (0.9%), preferred stock (0.6%), other (39.7%)
Corporate Info
Group Affiliation
Automobile Club of Michigan Group
Investment Rating
--
Company Address
1 Auto Club Drive
DEARBORN, MI 48126
DEARBORN, MI 48126
Phone Number
(414) 369-5033
NAIC Number
21202
Website
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