A.M. Best has slightly downgraded the financial strength rating and the issuer credit rating of National Title Insurance of NY Inc., noting that NTINY’s surplus—while positive—has not kept pace with its business growth.
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The insurance rating agency has specifically downgraded NTINY’s FSR to B+(Good) from B++(Good) and NTINY’s ICR to bbb- from bbb+.
The downgrade is related primarily to rapid premium growth in 2010, according to A.M. Best. It said this has resulted in higher underwriting and operating leverage that surplus growth has not kept pace with.
NTINY primarily focuses on the default and foreclosure segments of title insurance.
