Outlooks Revised to Positive for Oklahoma’s National American Insurance

AM Best revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of National American Insurance Co. (NAICO) in Chandler, Oklahoma.

Established in 1987, NAICO is a regional commercial property/casualty insurance carrier. Licensed in all 50 states, as well as the District of Columbia, it primarily operates in 40 states. The company’s standard coverages are automobile, general liability, property, inland marine, excess and workers’ compensation insurance.

The AM Best ratings reflect NAICO’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The revision of the outlooks to positive is based on the company’s consistent positive underwriting results over a 10-year time period, aided by a pure loss ratio that exceeds the industry composite average by over 10 percentage points, which is partially offset by an elevated underwriting expense ratio.

Furthermore, the company has reported profitable pre-tax operating return measures that are either comparable or outperformed its industry composite averages on a five- and 10-year average basis, as well as growing net investment income generated over the past five years, reflective of steady growth in the invested asset base driven by positive operating cash flows.

The positive underwriting performance can be attributed to management’s implementation of loss control mechanisms that are allowing the company to remain selective in terms of underwriting new accounts, along with management’s conservative approach to the marketplace as evidenced by a willingness to release unprofitable accounts.

Source: AM Best

Topics Trends Oklahoma