Major Rating Factors:
Weak profitability index (0.4 on a scale of 0 to 10) with operating losses during 2021 and 2023. Average return on equity over the last five years has been poor at -67.8%. Good long-term capitalization index (5.9) based on good current risk adjusted capital (severe loss scenarios) reflecting significant improvement over results in 2023. Good liquidity (6.8) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Other Rating Factors:
Good overall results on stability tests (5.8) despite weak risk adjusted capital in prior years and negative cash flow from operations for 2024. Stability strengths include good operational trends and good risk diversification. Ample reserve history (7.0) that can protect against increases in claims costs.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
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 (53.1%), common stock (33.1%), other (13.8%)
Corporate Info
Group Affiliation
Hochheim Prairie Farm Mutual Ins Association
Investment Rating
--
Company Address
500 US Highway 77A, South
Yoakum, TX 77995
Yoakum, TX 77995
Phone Number
(361) 293-5201
NAIC Number
31054
Website
Largest Affiliates