National Interstate Insurance Company and its affiliates have had their financial strength and issuer credit ratings affirmed at “A (Excellent)” and “a+”.
The group, whose affiliates are National Interstate Insurance Company of Hawaii, Triumphe Casualty Company and Vanliner Insurance Company, has enjoyed excellent long-term operating performance, strong risk-adjusted capitalisation achieved through generally profitable underwriting results, and has demonstrated expertise within its niche transportation market, according to A.M. Best.
The captive and its affiliates have also benefitted from an experienced management team and conservative operating philosophy, as well as a focus on providing alternative risk transfer programmes for the specialty transportation segment that provides a sustainable competitive advantage, particularly in terms of pricing, claims adjusting and loss control.
A.M. Best pointed to the adverse development of the prior years’ loss reserves for commercial auto, the group’s largest line, and the associated deterioration in underwriting results over the past three calendar years, as well as the concentration of business within the passenger and truck transportation industries, as potential threats to the ratings in the future.
