OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlooks to stable from negative and affirmed Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Indemnity National Insurance Company (Indemnity National) (Jackson, MS).
The Credit Ratings (ratings) reflect Indemnity National’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The revised outlooks reflect AM Best’s expectation that Indemnity National will maintain its very strong balance sheet assessment, supported by its risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). Since the company’s acquisition by KEWA Financial Inc. (KEWA) in 2017, the company reported significant premium growth, which has proved to be profitable. Even with the significant growth in premiums, Indemnity National stayed within its targeted premium leverage measures, largely driven by capital contributions totaling $60 million from KEWA. AM Best anticipates the company will continue to manage this premium growth effectively while maintaining appropriate profitability metrics.
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