FOR IMMEDIATE RELEASE
A.M. Best Upgrades Credit Ratings of National Independent Truckers Insurance Company, A RRG
OLDWICK, N.J., October 3, 2017—A.M. Best has upgraded the Financial Strength Rating to B++ (Good) from B+ (Good) and the Long-Term Issuer Credit Rating to “bbb” from “bbb-” of National Independent Truckers Insurance Company, A RRG (NITIC) (Charleston, SC). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.
The rating upgrades are based on the company’s ongoing history of underwriting profit in the recently challenging commercial auto liability line of business, due to its loss & loss adjustment expense (LAE) ratios, which have consistently outperformed its peers. The outlooks reflect A.M. Best’s expectation that future results may be less volatile and generally profitable.
The ratings reflect NITIC’s excellent underwriting practices, good capitalization and favorable operational leverage measures. Partially offsetting these positive rating factors are the company's limited market profile, high expense structure, single agency concentration and key man risk due to the company’s heavy reliance on the president for the operation's success. The company is very meticulous in selecting policyholders and insured drivers and rigorous in its underwriting and monitoring processes to avoid or limit losses. These factors drive consistently favorable underwriting and operating results.
Positive rating actions could occur if the company continues to sustain underwriting profitability while mitigating volatility and consistently increases 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 Credit Ratings 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. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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