FARMERS INS EXCHANGE
Major Rating Factors:
Fair long-term capitalization index (3.7 on a scale of 0 to 10) based on fair current risk adjusted capital (severe and moderate loss scenarios). Fair profitability index (3.1) with operating losses during 2018, 2020, 2021 and 2022.
Other Rating Factors:
Fair overall results on stability tests (4.3) including weak results on operational trends, negative cash flow from operations for 2022 and fair risk adjusted capital in prior years. Vulnerable liquidity (2.7) as a spike in claims may stretch capacity. History of adequate reserve strength (6.0) as reserves have been consistently at an acceptable level.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
F - Negative cash flow.
L - Past results on our liquidity tests.
R - Concerns about the financial strength of its reinsurers.
Principal Lines of Business:
Personal/comm auto (54.9%), homeowners (32.8%), comm multi (8.5%), work comp (0.4%), fire (0.1%), other (3.2%)
Licensed in:
All states except AK, HI, PR
Principal Investments:
Common stock (56.0%), investment grade bonds (33.6%), real estate (2.4%), cash (1.3%), non investment grade bonds (0.6%), other (6.1%)