Major Rating Factors:
Fair reserve development (3.6 on a scale of 0 to 10) as reserves have generally been sufficient to cover claims. Fair overall results on stability tests (4.1) including excessive premium growth and negative cash flow from operations for 2024. Good long-term capitalization index (6.4) based on good current risk adjusted capital (severe loss scenarios). Moreover, capital has steadily grown over the last five years.
Other Rating Factors:
Good liquidity (6.5) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Excellent profitability index (8.8) with operating gains in each of the last five years. Excellent expense controls.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
Principal Lines of Business:
Homeowners (29.1%), fire (15.3%), other (55.5%)
Licensed in:
TX
Principal Investments:
Investment grade bonds (87.8%), cash (9.1%), other (3.1%)
Corporate Info
Group Affiliation
Farmers Ins Group of Companies
Investment Rating
--
Company Address
5600 Beech Tree Lane
Caledonia, MI 49316
Caledonia, MI 49316
Phone Number
(616) 942-3000
NAIC Number
41688
Website
Largest Affiliates