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 Interstate Corporation And Its Property/Casualty Subsidiaries

A.M. Best has affirmed the financial strength rating (FSR) of A (Excellent) and issuer credit ratings (ICR) of “a+” of National Interstate Insurance Company and its affiliates, National Interstate Insurance Company of Hawaii, Inc., Triumphe Casualty Company and Vanliner Insurance Company (Fenton, MO) (collectively referred to as National Interstate). Concurrently, A.M. Best has affirmed the ICR of “bbb+” of National Interstate Corporation (NATL) [NASDAQ: NATL]. The outlook for all ratings is positive. All companies are headquartered in Richfield, OH, unless otherwise specified. NATL is 51.7% owned by Great American Insurance Company, a wholly owned subsidiary of American Financial Group, Inc.

The ratings reflect National Interstate’s excellent long-term operating performance, which outperforms the commercial automobile peer composite, strong risk-adjusted capitalization achieved through generally profitable underwriting results and demonstrated expertise within its niche transportation market. The ratings also acknowledge the company’s experienced management team and conservative operating philosophy. National Interstate’s focus on specialty transportation provides the group with a sustainable competitive advantage, particularly in terms of pricing, claims adjusting and loss control, which has resulted in high policyholder retention rates. Management has broadened the group’s product base through expansion into underserved markets as evidenced by growth within its alternative risk transfer (ART) and transportation components. Additionally, the group’s financial flexibility is enhanced by its publicly traded immediate parent, NATL, which maintains minimal financial leverage and strong interest coverage.

Partially offsetting these positive rating factors are the downturn in underwriting performance in 2013 due to a number of unrelated severe loss events, slight adverse development occurring on the commercial auto line and the concentration of business within the passenger and truck transportation industries.

Positive rating actions could be taken on National Interstate’s ratings if underwriting and operating results improve as anticipated and 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 company’s ratings include a weakening in operating performance and/or risk-adjusted capitalization, particularly if the resulting performance trails that of similarly rated peers.

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
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs