Major Rating Factors:
A history of deficient reserves (2.2 on a scale of 0 to 10). Underreserving can have an adverse impact on capital and profits. Deficiencies in the two year reserve development occurred in three of the previous five years and ranged between 18.1% and 98.8%. Vulnerable liquidity (0.0) as a spike in claims may stretch capacity. Fair long-term capitalization index (3.0) based on good current risk adjusted capital (severe and moderate loss scenarios) reflecting significant improvement over results in 2024.
Other Rating Factors:
Fair overall results on stability tests (4.6) including weak risk adjusted capital in prior years and negative cash flow from operations for 2025. Good overall profitability index (6.7). Excellent expense controls.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
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 (99.9%), other (0.1%)
Licensed in:
TX
Principal Investments:
Cash (78.7%), investment grade bonds (15.6%), other (5.8%)
Corporate Info
Group Affiliation
Merfax Financial Group LLC
Investment Rating
--
Company Address
13215 Bee Cave Parkway
Austin, TX 78738
Austin, TX 78738
Phone Number
(737) 615-4700
NAIC Number
29300
Website
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