Oldwick, NJ - August 17, 2016 - A.M. Best has revised the outlooks to positive from stable and affirmed the financial strength rating of B+ (Good) and the issuer credit rating of "bbb-" of National Independent Truckers Insurance Company, A RRG (NITIC) (Charleston, SC).
The revised outlooks reflect the company's favorable capital position due to its loss and loss adjustment expense (LAE) ratios, which have consistently outperformed its peers. Surplus growth has been consistent due to strong underwriting results and ongoing required annual capital contributions by policyholders. Although NITIC's strict loss control and underwriting guidelines have resulted in favorable loss experience, they have also contributed to its less competitive expense structure. Partially offsetting these positive rating factors are the company's limited market profile, agency concentration and key main risk with limited lateral support. Positive rating actions could occur if the company continues to generate sustainable underwriting profitability while mitigating volatility, or consistently increasing 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.
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