AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of Rural Trust Insurance Company (RTIC) (Dallas, TX), and its newly added subsidiary, National Telcom Corporation (NTC) (Burlington, VT). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect RTIC’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

NTC is a Vermont association captive formed in 1982 to provide coverage for members of its sponsor, National Telecommunications Cooperative Association (NTCA). NTC also reinsures two fronting insurers – RTIC and Companies of the Great American Insurance Group (unaffiliated) – and financially assumes a portion of each loss from the NTCA members. NTC acts as a niche captive insurer for rural telecommunications companies across the United States. NTC helps telecommunications businesses manage financial risk by providing industry specific insurance and risk management solutions.

RTIC acts as an extension of NTC and writes the business directly although there are some restrictions as RTIC is licensed only in 36 states. RTIC is pushing to license in all 50 states in the coming years. NTC and RTIC maintain a 50% quota share contract.

The ratings reflect the notable improvement in operating and underwriting results for NTC and RTIC in 2025, after 2024 was impacted by a significant tornado event driving underwriting losses. The continued growth at RTIC, largely from rate actions, has resulted in higher premium levels at both organizations. In an effort to reduce volatility in the underwriting book of business, RTIC has taken various actions to secure this goal including but not limited to rate increases, amending terms and conditions, and targeted state expansion. Risk-adjusted capitalization continues to support the higher premium levels and an expanding book of business while also benefiting from shareholder capital raises at NTC and RTIC in 2024. Shareholders have raised additional capital for NTC in 2020 and 2021, whereas at RTIC, this was the first capital raise since inception in 2014.

AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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