OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” of both subsidiaries of Investors Title Company (ITIC) [NASDAQ: ITIC]: Investors Title Insurance Company and National Investors Title Insurance Company (Austin, TX). These subsidiaries collectively are referred to as Investors Title Company Group (ITC Group). Concurrently, AM 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 AM 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 enables it to significantly outperform 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. ITC Group’s ERM practices are considered appropriate as it assesses and critically reviews risks annually, developing a comprehensive listing under which each respective risk is assigned to the appropriate staff and managers who are responsible for monitoring, managing and mitigation.
Significant deterioration in operating performance and erosion of risk-adjusted capitalization may result in negative rating action.
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