A.M. Best Affirms Credit Ratings of Investors Title Company and Its Subsidiaries

A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "a" of the two subsidiaries of Investors Title Company ITIC: Investors Title Insurance Company and National Investors Title Insurance Company (Austin, TX). These subsidiaries are collectively referred to as Investors Title Company Group (ITC Group). Concurrently, A.M. 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 A.M. 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 allows it to significantly outperform its 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. ERM is considered appropriate as ITC Group assesses and critically reviews its risks on an annual basis, developing a comprehensive listing where each risk is assigned to the appropriate staff and managers who are responsible for monitoring, managing and mitigating its respective risks.

While the ratings are not expected to change in the near term, positive rating action may result from continued maintenance of the positive operating performance trend along with growth in risk-adjusted capitalization. Significant deterioration in operating performance, resulting in erosion of risk-adjusted capitalization, may result in negative rating action.

This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating Action Press Releases.

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