Major Rating Factors:
Good overall results on stability tests (5.7 on a scale of 0 to 10) despite weak risk adjusted capital in prior years. Other stability subfactors include potentially strong support from affiliation with Goodville Mutual Ins Group, good operational trends and excellent risk diversification. Weak profitability index (2.3) with operating losses during 2022. Average return on equity over the last five years has been poor at -25.6%. Strong long-term capitalization index (7.8) based on excellent current risk adjusted capital (severe and moderate loss scenarios) reflecting significant improvement over results in 2022.
Other Rating Factors:
History of adequate reserve strength (7.0) as reserves have been consistently at an acceptable level. Superior liquidity (10.0) with ample operational cash flow and liquid investments.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Farmowners (57.7%), homeowners (40.8%), other (1.6%)
Licensed in:
SD
Principal Investments:
Common stock (52.8%), cash (20.8%), investment grade bonds (17.4%), real estate (6.2%), preferred stock (2.4%), other (0.5%)
Corporate Info
Group Affiliation
Goodville Mutual Ins Group
Investment Rating
--
Company Address
120 Calumet Avenue, SE
De Smet, SD 57231
De Smet, SD 57231
Phone Number
(605) 854-3732
NAIC Number
31445
Website
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