Major Rating Factors:
Fair profitability index (3.4 on a scale of 0 to 10) with operating losses during 2022, 2023 and the first six months of 2024. Average return on equity over the last five years has been poor at -1.5%. Strong long-term capitalization index (8.9) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Ample reserve history (9.4) that helps to protect the company against sharp claims increases.
Other Rating Factors:
Good liquidity (6.9) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Excellent overall results on stability tests (7.4). Stability strengths include good operational trends and excellent risk diversification.
Stability Factors:
F - Negative cash flow.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (74.2%), homeowners (23.7%), comm multi (0.6%), work comp (0.2%), farmowners (0.1%), other (1.2%)
Licensed in:
IA, IN, MI, ND, NE, PA, WI
Principal Investments:
Investment grade bonds (96.7%), other (3.3%)
Corporate Info
Group Affiliation
Auto Club Ins Association Group
Investment Rating
--
Company Address
One Auto Club Drive
Dearborn, MI 48126
Dearborn, MI 48126
Phone Number
(313) 336-1234
NAIC Number
21210
Website
Largest Affiliates
