Market Overview

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

Share:

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
(NASDAQ: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
.

A.M. Best is the world's oldest and most authoritative insurance
rating and information source. For more information, visit
www.ambest.com.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.

View Comments and Join the Discussion!