A.M. Best Co. has affirmed the financial strength rating (FSR) of ‘A+’ (Superior) and issuer credit ratings (ICR) of “aa-” of the Delaware-based Berkley Insurance Company (BIC) and 24 of its reinsured subsidiaries and affiliates, collectively referred to as W. R. Berkley Insurance Group.
Best also affirmed the FSR of ‘A+’ (Superior) and ICR of “aa-” of Iowa-based Berkley Life and Health Insurance Company, as well as the ICR of “a-” and debt ratings of “a-” on senior unsecured notes and “bbb” on trust preferred securities issued by the Connecticut-based W.R. Berkley Corporation.
Best said it “expects W. R. Berkley’s earnings to remain strong, with both its cash coverage ratios and financial leverage remaining supportive of its ratings,” and Best said it will continue to closely monitor both measures, particularly financial leverage, to ensure that all remain in line with its expectations.
In conclusion Best said “potential positive rating actions are unlikely at this time; however, a favorable change in the outlook could possibly occur over the long term if the group exhibits notably enhanced operating results through market cycles, remains steadfast in maintaining a conservative reserve posture while avoiding adverse prior year loss reserve development and can sustain growth in earnings that lead to strengthened risk-adjusted capitalization and, in particular, improved financial leverage.
A complete list of W. R. Berkley Corporation and its subsidiaries’ FSRs, ICRs and debt ratings is available from A.M. Best.