AM Best revises outlook to positive for National American Insurance Company



OLDWICK, New Jersey – (COMMERCIAL THREAD) –AM Best revised the outlook from stable to positive and confirmed the financial strength rating of A- (excellent) and the long-term issuer credit rating of “a-” (excellent) of National American Insurance Company (NAICO) ( Chandler, OK).

The ratings reflect the strength of NAICO’s balance sheet, which AM Best considers to be very strong, as well as its adequate operational performance, neutral business profile and appropriate management of corporate risks.

The revised outlook to positive is based on the Company’s consistent positive underwriting results over a 10-year period, aided by a pure loss ratio that exceeds the composite industry average by more than 10 percentage points, which which is partially offset by a high underwriting expense ratio. In addition, the company reported profitable pre-tax operating performance measures that are either comparable or above its composite industry averages on a five- and ten-year average basis, as well as net investment income in growth generated over the past five years, reflecting the steady growth in the invested asset base driven by positive operating cash flow. The positive underwriting performance can be attributed to the implementation by management of loss control mechanisms that allow the company to remain selective in terms of the subscription of new accounts, as well as the conservative approach of management towards – vis-à-vis the market, as evidenced by the desire to free up unprofitable accounts.

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