AM Best Assigns Issue Credit Rating to W. R. Berkley Corporation’s Subordinated Debentures

Rhea-AI Summary

AM Best has assigned a Long-Term Issue Credit Rating of “bbb+” to W. R. Berkley Corporation’s (WRB) $300 million, 4.125% subordinated debentures due February 2061. The outlook for this rating is stable. Proceeds will be used to redeem WRB’s existing 5.9% subordinated notes due April 2056 and for general corporate purposes. Post-issuance, WRB’s financial leverage will remain within AM Best’s guidelines, with a projected adjusted debt-to-total capital of 23.1% and unadjusted debt-to-total capital at 29.8%.

Positive

• Assigned 'bbb+' credit rating enhances WRB's financial credibility.
• Debt-to-total capital projections remain within AM Best's guidelines, indicating healthy leverage management.

Negative

• None.

AM Best has assigned a Long-Term Issue Credit Rating of “bbb+” to the $300 million, 4.125% subordinated debentures, due February 2061, recently announced by W. R. Berkley Corporation (WRB) (Greenwich, CT) [NYSE:WRB]. The outlook assigned to the Credit Rating (rating) is stable.

Proceeds will be used for redemption of WRB’s 5.9% subordinated notes, due April 2056 and general corporate purposes. Following the issuance of the 2061 debentures and completion of the redemption of the above notes, WRB’s financial leverage is expected to remain within AM Best’s guidelines for the assigned rating. Debt-to-total capital will measure 23.1%, adjusted for equity credit for hybrid securities. Unadjusted debt-to-total capital will measure 29.8%. Coverage metrics also will remain within AM Best’s guidelines for the assigned rating.

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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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FAQ

What is WRB's new credit rating from AM Best?

W. R. Berkley Corporation (WRB) has received a Long-Term Issue Credit Rating of 'bbb+' from AM Best.

What will the proceeds from WRB's subordinated debentures be used for?

The proceeds will be used to redeem WRB's 5.9% subordinated notes due April 2056 and for general corporate purposes.

What are the projected debt-to-total capital ratios for WRB after the new issuance?

The adjusted debt-to-total capital will be 23.1%, while the unadjusted debt-to-total capital will be 29.8%.

What is the outlook for WRB's new credit rating?

The outlook assigned to W. R. Berkley Corporation's new credit rating is stable.