A.M. Best has revised the outlook to “positive” from “stable” for the long-term issuer credit rating and affirmed the financial strength rating of “BBB+ (Good)” and the long-term issuer credit rating of “bbb” of National Independent Truckers Insurance Company (NITIC), a risk retention group (RRG).
According to A.M. Best, the revised ratings reflect NITIC’s “strong” balance sheet strength and its “adequate” operating performance, “limited” business profile and “appropriate” enterprise risk management.
A.M. Best said it expects the company to continue to improve its risk-adjusted capital position and operating performance.
It was also noted that surplus has benefitted from NITIC’s extensive risk management programme to produce underwriting profits in the difficult line of commercial automobile liability, supplemented by capital contribution requirements for policyholders in their first five years of RRG membership.
A.M. Best explained: “The rating affirmations reflect the company’s consistently strong operating performance demonstrated by comparison of its past five calendar years and five-year average combined ratios to A.M. Best’s commercial auto composite average.”
