Major Rating Factors:
Poor long-term capitalization index (2.1 on a scale of 0 to 10) based on weak current risk adjusted capital (severe and moderate loss scenarios). A history of deficient reserves (2.6) that places pressure on both capital and profits. Deficiencies in the two year reserve development occurred in three of the previous five years and ranged between 18.8% and 57.6%. Weak profitability index (2.4) with operating losses during 2021, 2022, 2023, 2024 and the first three months of 2025. Average return on equity over the last five years has been poor at -26.9%.
Other Rating Factors:
Good liquidity (6.6) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Good overall results on stability tests (5.5) despite weak risk adjusted capital in prior years and negative cash flow from operations for 2024. Stability strengths include good operational trends and excellent risk diversification.
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:
Personal/comm auto (95.7%), other (4.3%)
Licensed in:
AL, AR, AZ, CO, IL, IN, KS, KY, LA, MO, NM, NV, OK, OR, SC, TN, TX, WA
Principal Investments:
Investment grade bonds (86.9%), cash (7.1%), non investment grade bonds (3.5%), other (2.5%)
Corporate Info
Group Affiliation
EP Loya Group LP
Investment Rating
--
Company Address
1800 Lee Trevino
El Paso, TX 79936
El Paso, TX 79936
Phone Number
(915) 590-5692
NAIC Number
27090
Website
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