According to the insurance journal, A.M. Best Company affirmed Texas Based National Lloyds Insurance Company the financial strength of (A) or Excellent. Its issuer credit rating (ICR) remains an “a+” as well. National Lloyds is a subsidiary of London based Hilltop Holdings Inc.
“The rating of National Lloyds Insurance reflects its solid risk-adjusted capitalization, favorable operating earnings in recent years and local market expertise within its niche of the personal property insurance market.”
In their statement, Best points out the inherent problems associated with writing homeowners and property insurance in Texas.
“The positive rating factors are somewhat offset by National Lloyds’ geographic concentration of risk primarily in the Texas marketplace, with susceptibility to frequent and severe weather-related events. This was evidenced during 2008 and 2009 when multiple hurricane and tornado/hail events negatively impacted underwriting results.”
Moving forward, it is certain insurance companies like National Lloyds will continue following trends in the insurance market by improving underwriting guidelines in an effort to remain profitable and stable for years to come.