|Kourtnie Beckwith |
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Manager, Public Relations
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FOR IMMEDIATE RELEASE
OLDWICK - JULY 20, 2021 01:11 PM (EDT)
AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb+” (Good) from “bbb” (Good) and affirmed the Financial Strength Rating (FSR) of B++ (Good) of National Independent Truckers Insurance Company, A RRG (NITIC) (Charleston, SC). The outlook of the Long-Term ICR has been revised to stable from positive while the outlook of the FSR is stable.
The Credit Ratings (ratings) reflect NITIC’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The upgrade of the Long-Term ICR reflects NITIC’s continued improvement in overall balance sheet strength. NITIC has maintained the strongest level of risk-adjusted capitalization for several years, as measured by Best’s Capital Adequacy Ratio (BCAR), while maintaining its conservative underwriting leverage ratios over the most recent five-year period. The surplus has grown in each of the past five years, driven by solid underwriting results augmented by consistent investment income from a conservatively invested portfolio and annual per unit capital contributions from members. In total, surplus grew by 34% during the past five years and is continuing to grow in 2021.
The adequate operating performance assessment reflects favorable underwriting income in four of the past five years with moderate variability as a writer in a high frequency and severity line of business that has been difficult for many underwriters. The business profile remains limited as NITIC has geographic concentration in two states with one line of business, and AM Best considers the company’s ERM assessment appropriate for the size and scope of its operations.
The stable outlooks reflect NITIC’s strong overall balance sheet from prudent risk management and AM Best’s expectations that the company will maintain its risk-adjusted capital position and operating performance.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.