Major Rating Factors:
Fair reserve development (3.6 on a scale of 0 to 10) as reserves have generally been sufficient to cover claims. Vulnerable liquidity (2.8) as a spike in claims may stretch capacity. Weak overall results on stability tests (2.8) including excessive premium growth, weak results on operational trends and negative cash flow from operations for 2024. The largest net exposure for one risk is conservative at 1.2% of capital.
Other Rating Factors:
Fair long-term capitalization index (4.7) based on fair current risk adjusted capital (severe loss scenarios), although results have slipped from the excellent range during the last year. Good profitability index (4.9) with operating gains in each of the last five years. Excellent expense controls. Return on equity has been low, averaging 1.2% over the past five years.
Stability Factors:
A - Financial problems or weaknesses of a parent or affiliate company.
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
L - Past results on our liquidity tests.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (100.0%)
Licensed in:
AR, AZ, CO, CT, GA, IA, IL, IN, MN, MO, MS, NC, NV, TN, TX, UT, VA, WI
Principal Investments:
Investment grade bonds (97.7%), cash (0.8%), other (1.5%)
Corporate Info
Group Affiliation
Premier Holdings LLC
Investment Rating
--
Company Address
2 Maryland Farms
Brentwood, TN 37027
Brentwood, TN 37027
Phone Number
(800) 422-0794
NAIC Number
22454
Website
Largest Affiliates