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AM Best Revises Outlooks to Positive for Indemnity National Insurance Company
[November 29, 2023]

AM Best Revises Outlooks to Positive for Indemnity National Insurance Company


AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of "a-" (Excellent) of Indemnity National Insurance Company (INIC) (Jackson, MS).

The Credit Ratings (ratings) reflect INIC's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The positive outlooks reflect INIC's improved operating performance, primarily driven by profitable underwriting results and growing investment earnings. Following the change in ownership structure in 2017, the new management team identified certain new bonding opportunities and other profitability initiatives. Management's strategic focus has remained predominantly on a commercial surety bonding segment, as well as some excess and umbrella liability policies. Management has implemented a series of profitability initiatives, such as a disciplined underwriting approach, appropriate risk identification & management measures, as well as continuing to explore other classes of surety to offset concentration risk. However, the company's underwriting performance is impacted by an elevated underwriting expense structure, reflecting commissions paid to affiliated agencies, as well as administrative expenses paid to its parent, as part of the cost-sharing agreement. AM Best expects INIC's prospective underwriting performance to remain profitable as volatility of key metrics is anticipated to be low.

INIC's balance sheet strength assessment of very strong reflects its risk-adjusted capitalization at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR), largely driven by consistent surplus growth over the yeas, a high-quality, well-diversified investment portfolio, a comprehensive reinsurance program and stable loss reserving trends. These positive attributes are partially offset by slightly elevated underwriting leverage measures relative to composite norms.



INIC's limited business profile is reflective of its product concentration consisting of predominantly premium writings derived from commercial surety bonding products and some umbrella/excess liability policies.

INIC's appropriate ERM is demonstrated through a platform that adheres to strong corporate governance practices through regular engagement with the board.


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 © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


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