AM Best Affirms Credit Ratings of W. R. Berkley Corporation and Its Subsidiaries
Concurrently, AM Best has assigned an FSR of A+ (Superior) and a Long-Term ICR of “aa-” (Superior) to W. R. Berkley’s newly reinsured affiliate, Berkley Prestige Insurance Company (
The ratings of Berkley Group reflect its balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).
Berkley Group’s balance sheet strength assessment is anchored by its consistent strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). The company continues to demonstrate its ability to access capital markets as necessary and has continued to be focused on creating enhanced permanency of capital and lower cost of debt. Debt leverage has trended downward over the past five-year period and was
The group continues to maintain favorable market share in its core lines of business, as well as growth organically through new businesses and opportunities. Berkley Group’s recognized presence in domestic and international markets and its diversity of distribution and operations are key factors in its favorable top and bottom-line trends reported over the past five-year period. The group’s historically consistent operating results and profitability metrics point to nimble underwriting and pricing discipline, as well as effective risk management expertise. Berkley Group reported net premium growth across most of its core lines of business in the first quarter of 2023, with GAAP return on equity of
The ratings of Berkley Life and Health reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate ERM. The ratings also reflect the financial and operational support of the parent company.
Berkley Life and Health’s balance sheet strength assessment is supported by its risk-adjusted capitalization assessed at the strongest level, as measured by BCAR. The company has strengthened its risk-adjusted capitalization incrementally annually over the past five years, while also maintaining conservative, high-quality investments and favorable liquidity metrics.
Berkley Life and Health continues to grow premium driven by new and renewal sales of its group captive and medical stop-loss products. The company has reported increasing pre-tax net operating gains in recent years driven by favorable underwriting experience and lower expenses.
Berkley Life and Health is a market leader in the group captive market and maintains a market niche in the small group medical stop-loss space. However, the medical stop-loss market is highly competitive and is dominated by larger national carriers. The company receives explicit and implicit support from W. R. Berkley and is integrated fully into the parent organization’s operations and strategic plans.
The FSR of A+ (Superior) and the Long-Term ICRs of “aa-” (Superior) have been affirmed with stable outlooks for the following members of W. R. Berkley Insurance Group:
- Acadia Insurance Company
- Admiral Indemnity Company
- Admiral Insurance Company
- Berkley Casualty Company
- Berkley Assurance Company
- Berkley Insurance Company
- Berkley National Insurance Company
- Berkley Regional Insurance Company
- Berkley Specialty Insurance Company
- Carolina Casualty Insurance Company
- Clermont Insurance Company
- Continental Western Insurance Company
-
Firemen’s Insurance Company of
Washington, D.C. - Gemini Insurance Company
- Great Divide Insurance Company
- Intrepid Casualty Company
- Intrepid Insurance Company
- Intrepid Specialty Insurance Company
- Key Risk Insurance Company
- Midwest Employers Casualty Company
- Nautilus Insurance Company
- Preferred Employers Insurance Company
- Queen’s Island Insurance Company, Ltd.
- Riverport Insurance Company
- StarNet Insurance Company
-
Tri-State Insurance Company of
Minnesota - Union Insurance Company
- Union Standard Lloyds
- W. R. Berkley Europe AG
- Berkley International Seguros Mexico S.A.
- Berkley International Fianzas Mexico S.A.
The following Long-Term IRs have been affirmed with stable outlooks:
W. R. Berkley Corporation—
-- “a-” (Excellent) on
-- “a-” (Excellent) on
-- “a-” (Excellent) on 470 million,
-- “a-” (Excellent) on
-- “a-” (Excellent) on
-- “bbb+” (Good) on
-- “bbb+” (Good) on
-- “bbb+” (Good) on
-- “bbb+” (Good) on
The following indicative Long-Term IRs under the shelf registration have been affirmed with stable outlooks:
W. R. Berkley Corporation—
-- “a-” (Excellent) on senior unsecured debt
-- “bbb+” (Good) on subordinated debt
-- “bbb” (Good) on preferred stock
W. R. Berkley Capital Trust III—
-- “bbb” (Good) on preferred securities
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.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in
Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230601006094/en/
Kate Steffanelli
Associate Director -P/C
+1 908 439 2200, ext. 5063
kate.steffanelli@ambest.com
Christopher Sharkey
Associate Director, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Brian Virostek
Financial Analyst -L/H
+1 908 439 2200, ext. 5531
brian.virostek@ambest.com
Al Slavin
Senior Public Relations Specialist
+1 908 439 2200, ext. 5098
al.slavin@ambest.com
Source: AM Best
