Major Rating Factors:
Fair reserve development (3.7 on a scale of 0 to 10) as reserves have generally been sufficient to cover claims. Fair profitability index (3.8). Fair expense controls. Return on equity has been low, averaging 2.8% over the past five years.
Other Rating Factors:
Fair overall results on stability tests (3.0) including weak financial strength of affiliated American Family Ins Group, weak results on operational trends and negative cash flow from operations for 2022. Good liquidity (6.3) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. 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.
R - Concerns about the financial strength of its reinsurers.
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, PR
Principal Investments:
Investment grade bonds (96.6%), cash (0.2%), other (3.3%)
Corporate Info
Group Affiliation
American Family Ins Group
Investment Rating
--
Company Address
8040 Excelsior Drive Suite 400
MADISON, WI 53717
MADISON, WI 53717
Phone Number
(615) 744-1221
NAIC Number
37648
Website
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