The 25 Strongest Auto Insurers

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The 25 most financially sound auto insurers have at least one thing in common: A dedication to conservative underwriting and investment practices that have positioned them well in the economic downturn.

TheStreet.com Ratings recently completed its quarterly review of the financial strength of auto insurance companies, identifying 25 widely available companies worthy of an "excellent" financial strength rating of A+, A, or A-. The companies on the list are those that had total annual premium volume in 2007 (the most recent full-year data available) of $100 million or more, indicating that they offer coverage in several states.

TheStreet.com Ratings determines the financial strength of an insurance company through measuring a company's performance over time in many areas, including capitalization, profitability, reserve adequacy, liquidity and stability of operations. Insurers with the highest financial strength ratings are those with conservative underwriting practices that accurately price the risks they assume and set aside a sufficient amount of reserves to pay future claims while consistently earning profits to build capital.

High-rated companies may suffer problems during difficult economic times, but because of their historically sound practices, they have the capital built up to withstand tough times.

25 Strongest Auto Insurers
Company
Domicile State
TheStreet.com Financial Strength Rating
2007 Annual Auto Premium ($Mil)
UNITED SERVICES AUTOMOBILE ASN
Texas
A+
3,256.0
USAA CASUALTY INS CO
Texas
A+
2,121.9
INTERINS EXCH OF THE AUTOMOBILE CLUB
Calif.
A+
1,841.8
MERCURY INS CO
Calif.
A
1,360.2
AUTO-OWNERS INS CO
Mich.
A
866.4
COUNTRY MUTUAL INS CO
Ill.
A
466.1
HOME-OWNERS INS CO
Mich.
A
437.7
KENTUCKY FARM BUREAU MUTUAL INS CO
Ky.
A
424.6
DAIRYLAND INS CO
Wis.
A
345.5
FRANKENMUTH MUTUAL INS CO
Mich.
A
129.0
ALLSTATE INS CO
Ill.
A-
7,649.6
CALIFORNIA STATE AUTO ASN INTER-INS
Calif.
A-
1,504.0
CINCINNATI INS CO
Ohio
A-
760.4
MERCURY CASUALTY CO
Calif.
A-
566.4
SOUTHERN FARM BUREAU CAS INS CO
Miss.
A-
566.4
TENNESSEE FARMERS MUTUAL INS CO
Tenn.
A-
501.5
OWNERS INS CO
Ohio
A-
476.1
GRANGE MUTUAL CAS CO
Ohio
A-
441.7
NORTH CAROLINA FARM BU MUTUAL INS CO
N.C.
A-
418.5
FARM BUREAU MUTUAL INS CO
Iowa
A-
374.1
AMERICAN NATIONAL PROPERTY & CAS CO
Miss.
A-
321.9
UNITED FARM FAMILY MUTUAL INS CO
Ind.
A-
266.2
STATE FARM CTY MUTUAL INS CO OF TX
Texas
A-
203.7
USAA GENERAL INDEMNITY CO
Texas
A-
192.6
COOPERATIVA D SEGUROS MULTIPLES D PR
P.R.
A-
133.1
A=Excellent; B=Good; C=Fair; D=Weak; E=Very Weak

The top two insurers on our list, United Services Automobile Association and USAA Casualty Insurance Co., are not household names, but reach a sizable amount of customers. While they only sell coverage to those in the military and their families, memberships are for life -- meaning the child of a current or former military person who joins can go on to cover spouses and children, and so forth. The club gets pretty big as evidenced by the $5.3 billion in premiums these two companies collected in 2007, plus the additional $193 million in premiums collected by USAA General Indemnity, further down on the list.

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