AM Best has affirmed the financial strength rating (FSR) of W. R. Berkley Corporation (W. R. Berkley) as “A+” (Excellent).
AM Best has also affirmed the FSR of A+ (Superior) and the issuer credit rating (ICR) is A- (Superior) of Berkley Insurance Company (BIC) and its reinsured subsidiaries and affiliates, collectively referred to as the W. R. Berkley Insurance Group.
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 affiliates Intrepid Specialty Insurance Company and Intrepid Casualty Company (both domiciled in Urbandale, Indiana).
The outlook of these ratings is stable.
The ratings of the Berkley Group reflect its balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management.
Berkley Life and Health reported premium growth in 2021, mainly due to higher sales in its group captive product line with significant growth that is outpacing the stop-loss segment, which is the company’s core product.
AM Best says: “Berkley Group’s balance sheet strength assessment is rooted by its consistent strongest level of risk-adjusted capitalisation. The company has demonstrated its ability to access capital markets when needed, and has continued to be focused on creating enhanced permanency of capital and lower cost of debt.”
It added: “Debt leverage is somewhat higher than benchmark for similarly rated companies at 24.6 per cent, adjusted. The group’s interest coverage and liquidity metrics remain strong. Berkley Group effectively maintains a diversified portfolio of investments to support its liabilities, and is focused on creating the most favorable return, while maintaining its risk tolerance levels.”
