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State National Companies

State National Headquarters
Traded as	NASDAQ: SNC
Industry	Insurance
Founded	1973
Founder	Lonnie and Terry Ledbetter
Headquarters	1900 L. Don Dodson Drive Bedford, Texas
Area served	United States (50 states)
Products	Insurance fronting and collateral protection insurance
Number of employees	400
Website	www.statenational.com

State National Companies, Inc., is a specialty provider of property and casualty insurance operating in two niche markets, Program Services and Lender Services. The company is licensed to do business in all 50 states and D.C.

In 1973, brothers Terry and Lonnie Ledbetter founded a general agency selling Collateral Protection Insurance (CPI) exclusively in Texas.^[1] By the late 1970s, the agency began to expand writing CPI business beyond Texas.

In 1984, the agency created State National Insurance Company (SNIC)^[1] to underwrite CPI business directly. SNIC received an “A” (Excellent) rating from A.M. Best in 1993, and has maintained the rating for over 20 years.^[2]

In 1999, the company acquired Texas-domiciled National Security Insurance Company (NSIC), an insurance company then licensed to write business in 21 states, and later expanded its licensing to 50 states and D.C. In 2006, the company formed Delaware-domiciled United Specialty Insurance Company (USIC) to write coverage on an excess and surplus basis. The subsidiaries SNIC, NSIC, ad USIC comprise State National Group.

In 2014, Lonnie retired and Terry assumed the roles of Chief Executive Officer, President, and Chairman. In 2014, State National Companies began trading on the NASDAQ Global Select Market under the symbol SNC^[3] on November 3, 2014.^[4]

State National Companies is comprised of two divisions: Program Services and Lender Services.

In State National’s Program Services segment, the company provides access to the U.S. property and casualty insurance market in exchange for a ceding fee. Program Services is targeted to specialty general agents (GAs) or other insurance producers that sell, control, and administer books of insurance business that are supported by third-party reinsurers, domestic and foreign insurers and institutional risk investors (“capacity providers”) that want to access specific lines of U.S. property and casualty insurance business. State National's Program Services are also used by insurers that have experienced rating downgrades and need access to "A"-rated paper, such as Meadowbrook Insurance's agreement with State National Insurance Co. to provide “A” rated policies for a portion of its business in August 2013.^[5]

State National offers 50-state licensing authority and an A.M. Best “A” (Excellent) rating. Through issuing carriers, State National’s Program Services clients write a variety of insurance products, including general liability insurance, commercial liability insurance, commercial multi-peril insurance, property insurance, and workers compensation insurance. The company reinsures substantially all of the underwriting and operating risks in connection with issuing carrier arrangements.

In State National’s Lender Services segment, the company provides Collateral Protection Insurance (CPI), which insures personal automobiles, light trucks, SUVs and other vehicles held as collateral for loans made by credit unions, banks and specialty finance companies. State National primarily markets directly to financial institutions, and agents make up only a small part of how the company markets its products.^[6]

Lenders purchase CPI to provide coverage for automobiles or other vehicles of borrowers who do not uphold their obligation to insure the collateral underlying the loan. State National manages all aspects of the CPI business cycle, including sales and marketing, policy issuance, policy administration, underwriting and claims handling.

State National services CPI clients through InsurTrak, the company’s proprietary technology platform that allows both State National and its clients to track and manage a CPI program.

In 2009, State National entered into an exclusive relationship with CUNA Mutual to provide CPI in the credit union marketplace.^[7] The partnership created the company's largest one-year increase into the credit union market.^[1] In June 2014, the two companies renewed their alliance in a contract valid through July 2018.^[8]

• State National Companies Official website
• State National Companies Investor Relations website
• InsurTrak
• CUNA Mutual

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