Major Rating Factors:
Fair profitability index (4.1 on a scale of 0 to 10) with operating losses during 2023. Return on equity has been low, averaging 1.3% over the past five years. Fair overall results on stability tests (4.2) including. Strengths include potentially strong support from affiliation with Farmers Alliance Mutual Ins Co. Strong long-term capitalization index (10.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels.
Other Rating Factors:
Ample reserve history (9.2) that helps to protect the company against sharp claims increases. Excellent liquidity (7.5) 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:
Personal/comm auto (62.4%), homeowners (30.8%), farmowners (5.6%), comm multi (0.6%), other (0.7%)
Licensed in:
KS, NE, OK, SD
Principal Investments:
Investment grade bonds (97.8%), cash (1.0%), other (1.2%)
Corporate Info
Group Affiliation
Farmers Alliance Mutual Ins Co
Investment Rating
--
Company Address
1122 North Main Street
McPherson, KS 67460
McPherson, KS 67460
Phone Number
(620) 241-2200
NAIC Number
33154
Website
Largest Affiliates