This Day On The Street
Continue to site
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

A.M. Best Affirms Ratings Of National Lloyds Insurance Company And American Summit Insurance Company

A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and issuer credit rating (ICR) of “a+” of National Lloyds Insurance Company (National Lloyds), as well as the FSR of A (Excellent) and ICR of “a” of American Summit Insurance Company (American Summit).

Additionally, A.M. Best has affirmed the ICR of “bbb+” of Hilltop Holdings Inc. (HTH) (headquartered in Dallas, TX) (NYSE: HTH). National Lloyds and American Summit are subsidiaries of HTH. The outlook for all ratings is stable. All companies are domiciled in Waco, TX, except where specified.

HTH currently operates as a public holding company that is endeavoring to make opportunistic acquisitions on an ongoing basis.

The ratings of National Lloyds reflect its solid risk-adjusted capitalization, generally favorable operating earnings in most years and local market expertise within its niche of the personal property insurance market. These positive rating factors are somewhat offset by National Lloyds’ geographic concentration of risk primarily in the Texas marketplace, with susceptibility to frequent and severe weather-related events. This was evidenced during 2008 and 2011 when multiple storm losses negatively impacted underwriting results. However, National Lloyds continues to improve its underwriting guidelines in an effort to reduce inherent risk.

The ratings of American Summit recognize its solid risk-adjusted capitalization and generally favorable operating performance. These positive rating factors are somewhat offset by American Summit’s geographic concentration of risk and limited product offerings as primarily a provider of insurance for the mobile home market. As a result, American Summit’s underwriting performance is susceptible to the frequency and severity of localized storm activity. This was evidenced in 2010-2011 as a large hailstorm in Arizona negatively impacted underwriting results.

However, American Summit maintains a prudent catastrophe reinsurance program in conjunction with its affiliate company, National Lloyds, to mitigate losses associated with severe weather-related catastrophe events.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
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!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs