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A.M. Best Revises Outlooks to Positive for National Telcom CorporationA.M. Best has revised the outlooks for positive from stable and affirmed the financial strength rating of B++ (Good) and the issuer credit rating of "bbb+" of National Telcom Corporation (NTC) (Burlington, VT). This action is based on the company's improved operating and underwriting results in recent years, driven by improved expense management. In addition, the company has reduced its dependence on third-party fronting agreements through the investment in an affiliated start-up company, Rural Trust Insurance Company. NTC is a captive insurance company that reinsures two fronting insurers - Great American Insurance Company and Rural Trust Insurance Company - and financially assumes a portion of each loss from the National Telecommunications Cooperative Association's insured members. NTC has a niche expertise as a provider of insurance products to rural, independent telephone companies located throughout the United States. NTC helps telecommunication businesses manage financial risk by providing industry specific insurance and risk management solutions. NTC benefits from a management team with a long-standing history in the telecommunications market. In addition, its loss ratios have outperformed the arket on both a five and 10-year basis. Conversely, the company has historically had an elevated expense position, which has improved in more recent years. Partially offsetting these positive rating factors is the company's limited business profile and narrow product offering. A.M. Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best's Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive. This press release relates to rating(s) 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. A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2016 by A.M. Best Rating Services, Inc. ALL RIGHTS RESERVED.
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