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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 17, 2016 10:26 AM (EDT)
A.M. Best has revised the outlooks to positive from stable and affirmed the financial strength rating of B+ (Good) and the issuer credit rating of “bbb-” of National Independent Truckers Insurance Company, A RRG (NITIC) (Charleston, SC).
The revised outlooks reflect the company’s favorable capital position due to its loss & loss adjustment expense (LAE) ratios, which have consistently outperformed its peers. Surplus growth has been consistent due to strong underwriting results and ongoing required annual capital contributions by policyholders. Although NITIC’s strict loss control and underwriting guidelines have resulted in favorable loss experience, they have also contributed to its less competitive expense structure. Partially offsetting these positive rating factors are the company’s limited market profile, agency concentration and key man risk with limited lateral support.
Positive rating actions could occur if the company continues to generate sustainable underwriting profitability while mitigating volatility, or consistently increasing surplus. Negative rating actions could occur if underwriting profitability trends negatively and results in a material deterioration in the adequacy of the company’s risk-adjusted capitalization.
This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.