A.M. Best Affirms Credit Ratings of National General Holdings Corp. and Subsidiaries
The ratings reflect National General Group’s balance sheet strength, which
The assessment of balance sheet strength reflects
The group’s operating performance is derived from its loss ratio, which consistently outperforms those of its non-standard automobile composite peers. While the group’s statutory underwriting and operating results modestly underperformed the peer group over the past five years, the group’s profitability on a GAAP basis (which considers the benefit of the group’s fee-based revenues) is significantly better than its statutory performance metrics. In addition, the group’s returns on revenue and equity generally outperform its composite average, although 2017 results were impacted negatively by catastrophes and severe weather.
National General Group’s business profile assessment reflects its diverse operations within
Adjusted debt leverage at NGHC is in line with guidelines for its current rating, as is its interest coverage. Debt to tangible capital metrics are elevated relative to peers, reflecting the goodwill and intangibles associated with the enterprise’s acquisition strategy. Given the income generation of these acquisitions, the capital position is expected to increase over time, creating an improved level of tangible to total capital.
The FSR of A- (Excellent) and the Long-Term ICRs of “a-” have been affirmed for the following insurance subsidiaries of
-
New South Insurance Company -
National General Assurance Company -
Integon National Insurance Company -
Integon Indemnity Corporation -
Integon General Insurance Corporation -
MIC General Insurance Corporation - National General Insurance Company
-
Standard Property & Casualty Insurance Company -
National Health Insurance Company -
Integon Casualty Insurance Company -
Imperial Fire and Casualty Insurance Company -
Integon Preferred Insurance Company -
National General Insurance Online Inc. -
National General Premier Insurance Company -
National General Re Ltd. -
Century-National Insurance Company - Agent Alliance Insurance Company
-
Direct Insurance Company -
Direct General Insurance Company -
Direct General Insurance Company of Mississippi - Direct National Insurance Company
-
Direct General Life Insurance Company
The following Long-Term IRs have been affirmed:
National General Holdings Corp.—
-- “bbb-” on
-- “bbb-” on
-- “bb+” on
-- “bb” on
-- “bb” on
-- “bb” on
The following indicative Long-Term IRs have been affirmed:
National General Holdings Corp.—
-- “bbb-” on senior unsecured debt
-- “bb+” on subordinated debt
-- “bb” on preferred stock
-- “bb” on junior subordinated debt
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
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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