Major Rating Factors:
Fair reserve development (4.1 on a scale of 0 to 10) as reserves have generally been sufficient to cover claims. Good profitability index (4.9) with operating gains in each of the last five years. Excellent expense controls. Return on equity has been low, averaging 3.2% over the past five years. Good overall results on stability tests (6.7) despite excessive premium growth and negative cash flow from operations for 2023. Stability strengths include good operational trends and excellent risk diversification.
Other Rating Factors:
Vulnerable liquidity (1.5) as a spike in claims may stretch capacity. 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.
Stability Factors:
F - Negative cash flow.
G - Fast asset or premium growth.
L - Past results on our liquidity tests.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (100.0%)
Licensed in:
All states except MI
Principal Investments:
Investment grade bonds (94.3%), cash (0.2%), other (5.5%)
Corporate Info
Group Affiliation
American Family Ins Group
Investment Rating
--
Company Address
2636 Elm Hill Pike
Nashville, TN 37214
Nashville, TN 37214
Phone Number
(615) 242-1961
NAIC Number
37648
Website
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