A.M. Best Affirms Credit Ratings of Investors Title Company and Its Subsidiaries
July 26 2018 - 10:35AM
Business Wire
A.M. Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR)
of “a” of the two subsidiaries of Investors Title Company
(NASDAQ:ITIC): Investors Title Insurance Company and
National Investors Title Insurance Company (Austin, TX).
These subsidiaries are collectively referred to as Investors
Title Company Group (ITC Group). Concurrently, A.M. Best has
affirmed the Long-Term ICR of “bbb” of ITIC. The outlook of these
Credit Ratings (ratings) is stable. All companies are domiciled in
Chapel Hill, NC, unless otherwise specified.
The ratings reflect ITC Group’s balance sheet strength, which
A.M. Best categorizes as very strong, as well as its strong
operating performance, limited business profile and appropriate
enterprise risk management (ERM).
ITC Group’s balance sheet strength reflects its strong
risk-adjusted capitalization and robust surplus growth that is
reflective of strong operating earnings and its conservative
underwriting position. ITC Group’s operating performance
consistently outperforms the industry, driven by its
lower-than-average loss and loss adjustment expense ratios. This
level of performance allows it to significantly outperform its
peers in terms of return on equity and return on revenue. ITC
Group’s limited business profile is driven largely by the group’s
heavy product orientation and its significant geographic
concentration in North Carolina and Texas. ERM is considered
appropriate as ITC Group assesses and critically reviews its risks
on an annual basis, developing a comprehensive listing where each
risk is assigned to the appropriate staff and managers who are
responsible for monitoring, managing and mitigating its respective
risks.
While the ratings are not expected to change in the near term,
positive rating action may result from continued maintenance of the
positive operating performance trend along with growth in
risk-adjusted capitalization. Significant deterioration in
operating performance, resulting in erosion of risk-adjusted
capitalization, may result in negative rating action.
This press release relates to Credit Ratings that have been
published on A.M. Best’s website. For all rating information
relating to the release and pertinent disclosures, including
details of the office responsible for issuing each of the
individual ratings referenced in this release, please see A.M.
Best’s Recent Rating Activity web page. For
additional information regarding the use and limitations of Credit
Rating opinions, please view Understanding Best’s Credit
Ratings. For information on the proper media use of Best’s
Credit Ratings and A.M. Best press releases, please view
Guide for Media - Proper Use of Best’s Credit Ratings and A.M.
Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative
insurance rating and information source. For more information,
visit www.ambest.com.
Copyright © 2018 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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version on businesswire.com: https://www.businesswire.com/news/home/20180726005598/en/
A.M. BestHerman Redd, +1-908-439-2200, ext.
5623Financial Analystherman.redd@ambest.comorSusan
Molineux, +1-908-439-2200, ext. 5829Associate
Directorsusan.molineux@ambest.comorChristopher Sharkey,
+1-908-439-2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorJim Peavy,
+1-908-439-2200, ext. 5644Director, Public
Relationsjames.peavy@ambest.com
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