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 Affirms Ratings Of National Interstate Corporation And Its Property/Casualty Subsidiaries

Stocks in this article: NATL

A.M. Best Co. has affirmed the issuer credit rating (ICR) of “bbb+” of National Interstate Corporation (NATL) [NASDAQ: NATL]. Concurrently, A.M. Best has affirmed the financial strength rating (FSR) of A (Excellent) and ICRs of “a+” of the operating members of National Interstate Group (National Interstate). The outlook for all ratings is positive. All companies are domiciled in Richfield, OH, except for Vanliner Insurance Company, which is domiciled in Fenton, MO. NATL is 52% 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 reflect the group members’ excellent operating performance, which outperforms the peer composite over the long term, strong risk-adjusted capitalization and demonstrated expertise within the transportation industry, which is its niche market. In addition, the ratings acknowledge the experienced management team and conservative operating philosophy. National Interstate’s specialty focus provides the group with a sustainable competitive advantage, particularly in terms of pricing, claims adjusting and loss control, resulting in high policyholder retention rates despite the competitive operating environment. Management has effectively broadened the group's product base through expansion into underserved markets as evidenced by growth within its Alternative Risk Transfer (ART) segment. Additionally, the group's financial flexibility is enhanced by its publicly traded immediate parent, NATL, which maintains modest financial leverage and strong interest coverage.

Partially offsetting these positive rating factors are the concentration of business within the passenger and truck transportation industries, the inherent risks associated with modest new business premium growth occurring within the group’s ART business component, and to a lesser extent, 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 National Interstate’s ratings include the deterioration of risk-adjusted capitalization and/or operating results, particularly if the resulting performance trails that of similarly rated peers.

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