Major Rating Factors:
Poor long-term capitalization index (0.5 on a scale of 0 to 10) based on weak current risk adjusted capital (severe and moderate loss scenarios), although results have slipped from the fair range during the last year. Weak profitability index (0.3) with operating losses during 2021, 2023 and 2024. Average return on equity over the last five years has been poor at -36.0%. Weak overall results on stability tests (2.1) including weak results on operational trends, weak risk diversification and negative cash flow from operations for 2024. The largest net exposure for one risk is high at 4.6% of capital.
Other Rating Factors:
Fair liquidity (4.0) as cash resources may not be adequate to cover a spike in claims. Ample reserve history (9.2) that helps to protect the company against sharp claims increases.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Fire (100.0%)
Licensed in:
TX
Principal Investments:
Investment grade bonds (44.2%), common stock (27.7%), real estate (1.3%), non investment grade bonds (0.3%), other (26.5%)
Corporate Info
Group Affiliation
RVOS Farm Mutual Ins Co
Investment Rating
--
Company Address
2301 South 37th Street
Temple, TX 76504
Temple, TX 76504
Phone Number
(254) 773-2181
NAIC Number
21733
Website
Largest Affiliates