Ultimate Parent: Alaska National Corporation ALASKA NATIONAL INSURANCE COMPANY. Anchorage, Alaska

Transcription

1 Anchorage, Alaska A Ultimate Parent: Alaska National Corporation ALASKA NATIONAL INSURANCE COMPANY 7001 Jewel Lake Road Anchorage, AK Web: Tel: Fax: AMB#: NAIC#: Ultimate Parent#: FEIN#: BEST S CREDIT RATING Best s Financial Strength Rating: A Best s Financial Size Category: IX Outlook: Stable RATING RATIONALE Rating Rationale: The ratings reflect Alaska National Insurance Compa- ny s (ANIC) excellent risk-adjusted capitalization, strong underwriting performance, and solid operating profitability, which have outperformed the workers compensation peer composite over the long term by wide margins. The ratings also reflect the company s solid position as a regional carrier operating within the western United States. Partially offsetting these positive rating factors are the significant geographic concentration within two states, which exposes results to potential changes within the regulatory environment; stockholder dividends, which somewhat constrained surplus growth in prior years; relatively high reliance on the federal terrorism backstop, TRIPRA, for one tier three location; and competitive market conditions. Despite these concerns, the outlooks reflect the company s historically strong operating performance and A.M. Best s expectation that operating results will remain profitable over the near term. The company s regional market focus, emphasis on underwriting fundamentals, and conservative operating strategies have contributed to strong operating results over the long term. Other contributing fac A.M. Best Company, Oldwick, NJ Printed August 7, Page 1 of 5

2 tors include the company s successful risk management programs, consistent policyholder retention rates, and diversification into other types of commercial lines business in the Pacific Northwest. While the company s terrorism risk exposure remains relatively high on a gross basis in one tier three location, management has reduced its net exposure to a manageable level through the utilization of third-party reinsurance and TRIPRA. However, due to the temporary nature of TRIPRA, A.M. Best will continue to monitor the company s gross terrorism risk exposure over time as it relates to the company s risk management practices and overall capacity. While A.M. Best believes that Alaska National is well positioned at its current rating level, a significant deterioration in operating results over the long term beyond expectations could cause negative rating pressure. KEY FINANCIAL INDICATORS ($000) Net Pre-tax Total Policy- Premiums Operating Admitted holders Comb. Year Written Income Assets Surplus Ratio ,089 45, , , ,232 41, , , ,856 26, , , ,565 59, , , ,253 59, , , (*) Data reflected within all tables of this report has been compiled from the company-filed statutory statement. BUSINESS PROFILE Alaska National Insurance Company (ANIC) writes commercial lines insurance with a focus on workers compensation. In Alaska, the company maintains the largest market share in both workers compensation and commercial automobile liability and is also a leading writer in all other commercial lines. The company operates within the western United States, with exposure outside of this market being minor and primarily in support of its core business. The company maintains three offices outside of Alaska. Through its Seattle office, the company writes multi-jurisdiction employee risks for businesses that have both maritime- and land-based exposures as well as state act exposures for businesses based in the Pacific Northwest. ANIC also writes commercial lines business from its offices in Seattle and Boise, ID, which includes commercial auto, property, general liability and workers compensation business throughout the Pacific Northwest and the Mountain States. This diversification followed the opening of an office in San Francisco in late 2000 to write California workers compensation subsequent to the acquisition of the renewal rights of another carrier. Management maintains a conservative view towards entering any new markets. ANIC markets its insurance products through more than 370 brokerage firms. All non-maritime business is written at rates based on ISO, California Bureau and National Council on Compensation Insurance (NCCI) loss costs subject to experience rating, approved multipliers and schedule modification plans. Large deductible programs and retrospectively rated policies are utilized on larger casualty risks. While the company is a market for large construction inland marine business in support of existing and new accounts, risks are also written on a stand-alone basis. The company also acts as a servicing carrier in Alaska and participates in the NCCI workers compensation pool. Additionally, the company participates in the Automobile Insurance Plan Service Office (AIPSO) assigned risk plan. Territory: The company is licensed in AL, AK, AZ, CA, CO, FL, HI, ID, IL, IA, KS, LA, MN, MS, MO, MT, NV, NM, ND, OK, OR, SD, TX, UT, WA and WY BY-LINE BUSINESS ($000) Reinsurance Product DPW Prem Assumed Line ($000) (%) ($000) (%) Workers Comp , , Com l MultiPeril , Comm l Auto Liab , Oth Liab Occur , Inland Marine , All Other , Total , , Reinsurance Business Product Prem Ceded NPW Retention Line ($000) (%) ($000) (%) (%) Workers Comp , , Com l MultiPeril , , Comm l Auto Liab , , Oth Liab Occur , , Inland Marine , All Other , , Total , , HISTORY The company was incorporated on April 30, 1979, under the laws of Alaska and began business on October 1, Capital paid up of $50,000,000 consists of 250,000 outstanding common shares at a $100 par value and $25,000,000 of contributed surplus. There are 1,000,000 authorized capital shares A.M. Best Company, Oldwick, NJ Printed August 7, Page 2 of 5

3 MANAGEMENT All of the outstanding capital stock is owned by Alaska National Corporation, an Alaska holding company, whose stock is owned directly or beneficially by employees, officers and directors of Alaska National Insurance Company. Administration of the company s affairs is under the direction of the president, Craig L. Nodtvedt, who was elected to his present position in 2005, having previously served as senior vice president. The senior officers and directors have extensive experience in the management of insurance company operations in Alaska, Washington, California, Oregon and Idaho. Officers: Chairman, George S. Suddock; Vice Chairman, David P. Jones; President, Craig L. Nodtvedt; Executive Vice Presidents, June Hill (Claims), Bernie D. Raven (Underwriting), Richard B. Suddock (Finance & Administration); Senior Vice Presidents, Kristy Bottomley, Wayne Bryan, Elizabeth A. Humphries, Terrence E. Kordewick, Scott Lincoln, Roger L. Moseley, Jeff Mouck, John L. Ramey; Treasurer, Takashi Azegami. Directors: Jonathan L. Block, Richard L. Block, June V. Hill, David P. Jones (Vice Chairman), Norman F. Kaelber, Terrence E. Kordewick, Roger L. Moseley, Craig L. Nodtvedt, Gary B. Oehler, James E. Pfeifer, John L. Ramey, Bernie D. Raven, George S. Suddock (Chairman), Richard B. Suddock. Balance Sheet Admitted Assets ($000) 12/31/2014 % Bonds $499, Common stock , Cash & short-term invest , Real estate, investment Other non-affil inv asset , Real estate, offices , Total invested assets $751, Premium balances , Accrued interest , All other assets , Total assets $879, Liabilities & Surplus ($000) Loss & LAE reserves $354, Unearned premiums , Conditional reserve funds All other liabilities , Total liabilities $499, Capital & assigned surplus , Unassigned surplus , Total policyholders surplus $380, Total liabilities & surplus $879, A.M. Best Company, Oldwick, NJ Printed August 7, Page 3 of 5

4 ALASKA NATIONAL INSURANCE COMPANY Total Admitted Assets Years in millions of dollars FINANCIAL SUMMARY ($000) as of 12/31/2014 Policyholders Surplus $ 380,517 Direct Premiums Written $ 240,898 Combined Ratio Net Underwriting Income $ 33,417 Net Investment Income $ 26, A.M. Best Company, Oldwick, NJ Printed August 7, Page 4 of 5

5 Why is this Best s Rating Report important to you? A Best s Rating Report from the A.M. Best Company showcases the opinion from the leading provider of insurer ratings of a company s financial strength and ability to meet its obligations to policyholders, as well as its relative credit risk. The A.M. Best Company is the oldest, most experienced rating agency in the world and has been reporting on the financial condition of the insurance companies since A Best s Financial Strength Rating is an independent opinion of an insurer s financial strength and ability to meet its ongoing insurance policy and contract obligations. The Financial Strength Rating opinion addresses the relative ability of an insurer to meet its ongoing insurance policy and contract obligations. The rating is not assigned to specific insurance policies or contracts and does not address any other risk, including, but not limited to, an insurer s claims-payment policies or procedures; the ability of the insurer to dispute or deny claims payment on grounds of misrepresentation or fraud; or any specific liability contractually borne by the policy or contract holder. The rating is not a recommendation to purchase, hold or terminate any insurance policy, contract or any other financial obligation issued by an insurer, nor does it address the suitability of any particular policy or contract for a specific purpose or purchaser. In arriving at a rating decision, A.M. Best relies on third-party audited financial data and/or other information provided to it. While this information is believed to be reliable, A.M. Best does not independently verify the accuracy or reliability of the information. The company information appearing in this pamphlet is an extract from the complete company report prepared by the A.M. Best Company or A.M. Best Europe Rating Services Limited. For the latest Best s Financial Strength Ratings along with their definitions and A.M. Best s Terms of Use, visit the A.M. Best website at You may also obtain AMB Credit Reports by visiting our site or calling our Customer Service department at , ext To expedite your request, please provide the company s identification number (AMB#) A.M. Best Company, Oldwick, NJ Printed August 7, Page 5 of 5