Insurance Age - Solid ratings across the board for NIG

Insurance Age - Solid ratings across the board for NIG: "Solid ratings across the board for NIG
NIG has changed its profile since dropping motor extended-warranty business but the rating holds up based on its other lines
Standard & Poor's has assigned a 'BBBpi' (Good) insurer financial strength rating to National Insur-ance & Guarantee (NIG). The rating reflects adequate capitalisation, good earnings, a good level of technical reserves, and a conservative investment mix. The rating is based on the annual shareholders' accounts.
NIG, a large UK provincial insurer, underwrites motor and property risks for the private and commercial markets. All of the business is distributed through a network of 3,000 independent brokers. In 2003 the company ceased writing its niche in motor extended warranty business, which contributed 23% of 2003 net written premiums. Movements in reserves relating to this book of business are largely recoverable from previous owner Winterthur Swiss Insurance (A-/stable). In 2003 NIG also began writing business acquired from Avon Insurance (Api). The ultimate parent is Royal Bank of Scotland Group (RBS) (AA-/stable/A-1+), having purchased the immediate parent Churchill Insurance Group (not rated) on 1 September 2003 from the Credit Suisse Group (A/Stable/A-1). NIG has been rated as a standalone company.
Capitalisation is regarded as adequate. Various share issues in 2003 increased capital with �70m to improve the solvency ratio (net premium written to adjusted shareholders funds) to 270% from 354% in 2002. This is considered good, considering the relative short tail of a majority of NIG's business. Exposure to reinsurers increased in 2003 as net retained business fell to 70% from 87%.
Earnings are considered good, despite a loss being recorded for 2003. This was dri"