Near National Property/Casualty Carriers Identified for 2012
By Barry J. Koestler, II, CFA
June 4, 2012:The eleven categories that comprise our classification system are National, Near National, Super Regional, Regional, State Specialist, Coverage Specialist, Strategic Subsidiary, Risk Retention Group, Surplus Lines Carrier, Reinsurer and companies with less than $1 million in direct premium written.
A company can be assigned to only one category in the Demotech Company Classification System. Therefore, a company not designated as a Near National is assigned to another classification, perhaps National, Super Regional, Regional, or State Specialist.
To qualify as a Near National, a carrier must meet the following criteria:
- More than $1 million of direct premium written in each of at least 35 states at December 31, 2011.
- Policyholders’ surplus of at least $100 million at December 31, 2011.
- $100 million or more of direct premium at December 31, 2011.
- $50 million or more of net premium at December 31, 2011.
- No line of business greater or equal to 90 percent of direct premium volume at December 31, 2011.
- No state greater or equal to 90 percent of direct premium volume at December 31, 2011.
- May not be a surplus lines carrier, risk retention group or reinsurer.
- Does not qualify as a National (more than $1 million of direct premium written in each of at least 45 states, $250 million or more of surplus, net premium written and direct premium written).