This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

A.M. Best Revises Outlook To Positive For National Interstate Corporation And Its U.S. Property/Casualty Subsidiaries

Stocks in this article: NATL

A.M. Best Co. has revised the outlook to positive from stable and affirmed the issuer credit rating (ICR) of “bbb+” of National Interstate Corporation (NATL) {NASDAQ: NATL). Concurrently, A.M. Best has revised the outlook to positive from stable and affirmed the financial strength rating (FSR) of A (Excellent) and ICRs of “a+” of the National Interstate Group (National Interstate) and its property/casualty members. All companies are headquartered in Richfield, OH, except for Vanliner Insurance Company, which is domiciled in Fenton, MO. NATL is 52.4% owned by Great American Insurance Company, a wholly-owned subsidiary of American Financial Group, Inc. (See below for a detailed list of the companies and ratings.)

The ratings for National Interstate reflect its excellent operating performance, strong risk-adjusted capitalization and demonstrated expertise in its niche market of providing coverages to the transportation industry. This specialty focus provides National Interstate with sustainable competitive advantages, particularly in terms of pricing, claims adjusting and loss control, which enables the group to maintain high policyholder retention rates in a highly competitive environment. Management has increased National Interstate’s product base by identifying and responding to market opportunities largely targeting underserved markets, which include growth in its alternative risk transfer (ART) component. Furthermore, the group’s financial flexibility is enhanced by NATL, which maintains modest financial leverage and strong interest coverage.

These positive rating factors are somewhat offset by the inherent risks pertaining to new business, specifically, National Interstate’s continued premium growth in its ART business component, the concentration of business in the passenger and truck transportation industries and to a lesser degree, the risks associated with the 2010 acquisition of Vanliner Group, Inc.

Positive rating actions could be taken on National Interstate’s ratings if underwriting and operating results materially outperform other similarly rated commercial auto insurers while maintaining a strong level of risk-adjusted capitalization. Key factors that could trigger negative rating actions on the group’s ratings include the deterioration of risk-adjusted capitalization and/or operating results, particularly if the resulting performance is below that of similarly rated peers, or an increase in financial leverage or decrease in cash coverage at NATL to a level that is outside A.M. Best’s guidelines for its rating level.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs