AM Best Affirms Credit Ratings of Investors Title Company and Its Subsidiaries

Rhea-AI Summary

AM Best has affirmed the Financial Strength Rating of A (Excellent) and Long-Term Issuer Credit Ratings of 'a' (Excellent) for Investors Title Company (ITC) and its subsidiaries. These ratings reflect ITC Group's very strong balance sheet strength assessed by Best's Capital Adequacy Ratio (BCAR), along with strong operating performance and appropriate enterprise risk management practices. The stable outlook indicates continued positive performance, driven by low loss ratios and robust return metrics.

Positive

• Affirmed Financial Strength Rating of A (Excellent).
• Strong operating performance with lower-than-average loss ratios.
• Very strong balance sheet with positive surplus growth.

Negative

• Limited business profile due to significant geographic concentration in North Carolina and Texas.

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. 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 assesses 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 assessment reflects its strongest risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and positive surplus growth that is reflective of its 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, and 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.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221013005694/en/

Edward Zonenberg

Senior Financial Analyst

+1 908 439 2200, ext. 5135

edward.zonenberg@ambest.com



Fred Eslami

Associate Director

+1 908 439 2200, ext. 5406

fred.eslami@ambest.com



Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com



Al Slavin

Communications Specialist

+1 908 439 2200, ext. 5098

al.slavin@ambest.com

Source: AM Best

FAQ

What is the Financial Strength Rating of Investors Title Company (ITIC)?

AM Best has affirmed the Financial Strength Rating of A (Excellent) for Investors Title Company (ITIC).

What does the stable outlook mean for ITIC's ratings?

The stable outlook indicates that ITIC is expected to maintain its current rating levels without significant changes in the near future.

How does ITIC's operating performance compare to the industry?

ITIC consistently outperforms the industry, benefiting from lower-than-average loss ratios and strong return metrics.

What are the risk management practices of ITIC?

ITIC employs appropriate enterprise risk management practices, reviewing and monitoring risks annually to ensure effective management.