AM Best Affirms Credit Ratings of Old United Casualty Company and Old United Life Insurance Company
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a+” (Excellent) of Old United Casualty Company (OUC). At the same time, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” (Excellent) of Old United Life Insurance Company (OUL). The outlook of these Credit Ratings (ratings) is stable. Both companies are headquartered in Overland Park, KS.
The ratings of OUC reflect the company’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).
OUC’s balance sheet strength assessment is assessed at the strongest level. This is driven by its risk-adjusted capitalization, which is consistently maintained at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as its favorable underwriting leverage position, conservative investment portfolio and unearned premium reserve equity. The company has a track record of stable and strong operating performance with consistently profitable underwriting results supported by investment income. The company benefits from being affiliated with Berkshire Hathaway Inc. (Berkshire) [NYSE: BRK A and BRK B], its ultimate parent, which manages OUC’s investment portfolio. The company’s investments are mainly in cash and readily marketable bonds and stocks.
