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A.M. Best Upgrades Credit Ratings of National Telcom Corporation
[September 28, 2018]

A.M. Best Upgrades Credit Ratings of National Telcom Corporation

A.M. Best has upgraded the Financial Strength Rating (FSR) to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) to "a-" from "bbb+" of National Telcom Corporation (NTC) (Burlington, VT). The outlooks of these Credit Ratings (ratings) have been revised to stable from positive.

The ratings reflect NTC's balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

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 throughout the United States. NTC helps telecommunication businesses manage financial risk by providing industry specific insurance and risk management solutions.

The rating upgrades reflect the continuation of NTC's improved operating and underwriting results in recent years, driven by improved underwriting expense management. In addition, NTC has reduced its dependence on third-party fronting agreements through the investment in an affiliated start-up company, Rural Trust Insurance Company (RTIC). Conversely, the growth of RTIC has resulted in higher premium levels and underwriting leverage ratios. However, NTC's risk-adjusted capitalization continues to support the higher premium levels and underwriting results have not displayed any materia deterioration.

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

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. 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 a global rating agency and information provider with a unique focus on the insurance industry. Visit for more information.

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

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