B
Falls Lake National Ins Co
RaleighNC
Rating Date
April 2025
NAIC
Classification
Risk Adjusted
Capital Ratio #1
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Capital Ratio #2
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Major Rating Factors: Good overall profitability index (5.1 on a scale of 0 to 10) with small operating losses during 2021. Return on equity has been low, averaging 1.9% over the past five years. Good liquidity (6.5) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Good overall results on stability tests (6.6) despite negative cash flow from operations for 2023. Stability strengths include good operational trends and excellent risk diversification.
Other Rating Factors: Fair reserve development (4.7) as reserves have generally been sufficient to cover claims. Strong long-term capitalization index (7.2) based on excellent current risk adjusted capital (severe and moderate loss scenarios). Moreover, capital has steadily grown over the last five years.
Stability Factors: A - Financial problems or weaknesses of a parent or affiliate company. F - Negative cash flow. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Personal/comm auto (16.6%), product liab. (9.7%), work comp (5.9%), comm multi (1.8%), fire (1.1%), med mal (1.0%), other (63.8%)
Licensed in: All states except CA
Principal Investments: Common stock (61.8%), investment grade bonds (27.4%), cash (9.8%), other (1.0%)
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Investments in Affiliates
Corporate Info
Group Affiliation
James River Group Holdings Ltd
Investment Rating
Company Address
6131 Falls of Neuse Road
Raleigh, NC 27609
Phone Number
(441) 278-4580
NAIC Number
31925
Largest Affiliates
C
Richmond, VA - P&C
C
Raleigh, NC - P&C
D
Richmond, VA - P&C