Major Rating Factors:
Fair reserve development (4.8 on a scale of 0 to 10) as reserves have generally been sufficient to cover claims. In 2024 the two year reserve development was 15.1% deficient. Fair profitability index (4.2) with operating losses during 2022 and 2023. Return on equity has been low, averaging 1.8% over the past five years. Fair overall results on stability tests (3.7) including negative cash flow from operations for 2024. The largest net exposure for one risk is excessive at 8.1% of capital.
Other Rating Factors:
Strong long-term capitalization index (7.4) based on excellent current risk adjusted capital (severe and moderate loss scenarios) reflecting improvement over results in 2023. Excellent liquidity (7.4) with ample operational cash flow and liquid investments.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
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:
TX
Principal Investments:
Investment grade bonds (85.7%), common stock (6.0%), cash (0.8%), other (7.5%)
Corporate Info
Group Affiliation
Germania Farm Mutual Ins Association
Investment Rating
--
Company Address
507 Highway 290 East
Brenham, TX 77833
Brenham, TX 77833
Phone Number
(979) 836-5224
NAIC Number
19470
Website
Largest Affiliates