AM Best has affirmed the financial strength rating of ‘A-’ (Excellent) and the long-term issuer credit ratings of ‘a-’ (Excellent) of Rural Trust Insurance Company (RTIC), based in Dallas, and its subsidiary, National Telcom Corporation (NTC), based in Burlington, Vermont. The outlook of these credit ratings is ‘stable’. The ratings reflect the balance sheet strength of RTIC, which the credit agency assesses as very strong, as well as its adequate operating performance, neutral business profile, and appropriate enterprise risk management. NTC is a Vermont association captive formed in 1982 to provide coverage for members of its sponsor, the National Telecommunications Cooperative Association (NTCA). The company acts as a niche captive insurer for rural telecommunications companies across the United States, helping businesses manage financial risk by providing industry specific insurance and risk management solutions. The captive also reinsures two fronting insurers, RTIC and Companies of the Great American Insurance Group, and financially assumes a portion of each loss from the NTCA members. RTIC acts as an extension of NTC and writes business directly. While RTIC is currently licensed in 36 states, the company intends to seek licensing in all 50 states in the coming years. NTC and RTIC maintain a 50 per cent quota share contract, which AM Best views as a factor that supports the ratings of both entities as a single rating unit. The ratings also consider the recent growth of the group, which saw its surplus increase to more than US$25 million in 2024 following its first capital raise since its inception in 2014.
