A.M. Best Affirms Ratings of National Interstate Corporation and Its Property/Casualty Subsidiaries

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has affirmed the financial strength rating of A (Excellent) and the 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 (collectively referred to as National Interstate). Concurrently, A.M. Best has affirmed the ICR of “bbb+” of National Interstate Corporation (NATL) [NASDAQ: NATL]. Vanliner is domiciled in Fenton, MO. All other companies are headquartered in Richfield, OH. NATL is approximately 51% owned by Great American Insurance Company, a wholly owned subsidiary of American Financial Group, Inc. The outlook for each rating is stable.

The ratings reflect the group’s excellent long-term operating performance; strong risk-adjusted capitalization achieved through generally profitable underwriting results; and demonstrated expertise within its niche transportation market. In addition, the ratings acknowledge the group’s experienced management team and conservative operating philosophy. The positive rating attributes are derived from management’s focus on maintaining rate integrity, controlled claims handling and detailed segmentation of risks that are supported by effective technology resources. Additionally, National Interstate’s focus on providing alternative risk transfer programs for the specialty transportation segment provides the group with a sustainable competitive advantage, particularly in terms of pricing, claims adjusting and loss control. The group’s financial flexibility is also enhanced by its publicly traded immediate parent, NATL, which maintains minimal financial leverage and strong interest coverage.

Partially offsetting these positive rating factors are adverse development of prior years’ loss reserves for commercial auto, the group’s largest line, and the associated deterioration in underwriting results over the past three calendar years; and the concentration of business within the passenger and truck transportation industries.

Favorable rating actions are unlikely in the near term. Negative rating actions could occur should underwriting or operating performance not demonstrate improvement toward a level in line with historical results or if adverse development of prior years’ loss reserves continues.

This press release relates to rating(s) 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.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2016 by A.M. Best Rating Services, Inc. ALL RIGHTS RESERVED.

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A.M. Best
Michael Russo
Senior Financial Analyst
+1 908 439 2200, ext. 5372
[email protected]
or
Jennifer Marshall
Assistant Vice President
+1 908 439 2200, ext. 5327
[email protected]
or
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
[email protected]
or
Jim Peavy
Assistant Vice President, Public Relations
+1 908 439 2200, ext. 5644
[email protected]

Source: A.M. Best

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