Federal Home Life still does most of its business in Illinois, California, Washington, Michigan, and Florida. It is not licensed in New York. A little over half of its business comes from the other 45 states and the District of Columbia.
By most accounts, Federal Home Life is going strong.
* The company has almost twice the availability of capital as they actually need at any given time. If you have a claim with the company, they should be able to pay it with no problem.
* The company is getting stronger each year. The amount of capital they have and the surplus they carry has increased at a rate of 11.5% per year since 1991. This means that when you purchase a policy, you have a good reason to depend on the company to be there when it is time to make a claim.
* The operating performance of Federal Home Life Insurance Company is not as strong as its capital and surplus would suggest. However, the numbers still show that the company is adequate. Over five years, they had a return on investments of 0.7%.
* The company would be able to liquidate its assets with money left over. Its liquidity ratio is 130.9%. Hopefully, as the years go by, that number will increase. Yet, it should be an academic question. You do not want to be with an insurance company that liquidates. It is only a way to measure soundness.
* Federal Home Life is not limited to one part of the country. While it is true that 42% of its business goes to five states, the rest is scattered out among many other states. If you live anywhere but New York, you can have an insurance policy with Federal Home Life. This also means that it will not be devastated by a natural disaster that happens in only one state.
* This company has stable earnings. It has been compared with much larger companies in the reliability of its income. What this means to you is that the company is sound and can be trusted.
* The Federal Home Life Insurance Company is held up by GE Assurance Group. You can count on the fact that the GE group will not let Federal Home go under. Just as you count on Federal Home Life, you can count even more on GE Assurance.
There are some ways that Federal Home Life Insurance Company could improve its operations. They could work on becoming more profitable and operating more efficiently. In the meantime, you should always look at the background of a company before you buy your insurance from that company. It is the wisest thing you can do when buying insurance.
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