AM Best Affirms Credit Ratings of United States Liability Insurance Company and Its Subsidiaries
August 14 2024 - 5:46PM
Business Wire
AM Best has affirmed the Financial Strength Rating of A++
(Superior) and the Long-Term Issuer Credit Ratings of “aa+”
(Superior) of United States Liability Insurance Company (USLI) and
its subsidiaries: Mount Vernon Fire Insurance Company; U.S.
Underwriters Insurance Company (Bismarck, ND); Mount Vernon
Specialty Insurance Company; and Radnor Specialty Insurance
Company. The outlook of these Credit Ratings (ratings) is stable.
All companies are domiciled in Omaha, NE, unless otherwise
specified.
The ratings reflect the insurance operating companies’
consolidated balance sheet strength, which AM Best assesses as
strongest, as well as their very strong operating performance,
neutral business profile and appropriate enterprise risk management
(ERM).
These assessments are evidenced by USLI’s long and stable record
of profitable underwriting and overall investment returns, superior
risk-adjusted capital position, relevant market presence and
conservative reserve positions. Additional positive rating factors
include a high level of diversification in the companies’ books of
business with regard to concentration limits, sales channels, rate
flexibility, proactive claims management philosophy and commitment
to customer service. Furthermore, these ratings continue to benefit
from implicit support provided to USLI and its subsidiaries by
their ultimate parent, Berkshire Hathaway Inc. (Berkshire) [NYSE:
BRK-A and BRK-B], and explicit support from their affiliate,
National Indemnity Company.
The explicit support for USLI is in the form of significant
reinsurance treaties with National Indemnity Company, a Berkshire
subsidiary. The implicit support for USLI is in the form of
investment management services and ERM supervision, both provided
by Berkshire. In addition to these factors, Berkshire has
established a long-term history of supporting its member
companies.
Last year, USLI’s common stock portfolio presented a significant
recovery from the previous year’s unrealized losses, as the stock
market closed the year with steep gains. Unrealized investment
gains were the largest component of the increase in surplus. The
companies’ risk-adjusted capitalization, as measured by Best’s
Capital Adequacy Ratio (BCAR), continues to be well into the
strongest range, providing ample cushion to absorb occasional
volatility in the capital markets. USLI’s underwriting income was
the largest in the past 10 years, and was also a significant
contributor to the companies’ surplus.
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 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.
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Guilherme Monteiro Simoes, CFA Senior Financial
Analyst +1 908 882 2317 guy.simoes@ambest.com
Gregory Dickerson Director +1 908 882 1737
gregory.dickerson@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com