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” (Excellent) of both subsidiaries of Investors Title Company (ITC) [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” (Good) of ITC. All companies are domiciled in Chapel Hill, NC, unless otherwise specified. The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect ITC Group’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).
The balance sheet strength assessment for ITC Group reflects its strongest risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and its long-term surplus growth, which is reflective of the group’s strong operating earnings and 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 focus and its significant geographic concentration in North Carolina and Texas. AM Best considers ITC Group’s ERM practices appropriate, as it assesses and critically reviews risks annually, as well as develops a comprehensive listing under which each respective risk is assigned to the appropriate staff and managers who are responsible for monitoring, managing and mitigation.
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