Major Rating Factors:
Good profitability index (4.9 on a scale of 0 to 10) with small operating losses during 2022. Excellent expense controls. Return on equity has been low, averaging 2.3% over the past five years. Good overall results on stability tests (6.0) despite excessive premium growth. Other stability subfactors include potential support from affiliation with Mercury General Corporation, good operational trends and excellent risk diversification. Fair reserve development (3.6) as reserves have generally been sufficient to cover claims.
Other Rating Factors:
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. 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.
Principal Lines of Business:
Homeowners (100.0%)
Licensed in:
GA
Principal Investments:
Investment grade bonds (68.2%), common stock (5.7%), cash (5.6%), other (20.4%)
Corporate Info
Group Affiliation
Mercury General Corporation
Investment Rating
Company Address
125 Town Park Drive, NW
Kennesaw, GA 30144
Kennesaw, GA 30144
Phone Number
(770) 552-5100
NAIC Number
34410
Website
Largest Affiliates