Press release content from Business Wire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.

AM Best Affirms Credit Ratings of Central States Indemnity Co. of Omaha and CSI Life Insurance Company

October 7, 2021 GMT

OLDWICK, N.J.--(BUSINESS WIRE)--Oct 7, 2021--

AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa-” (Superior) of Central States Indemnity Co. of Omaha (CSI), and its subsidiary, CSI Life Insurance Company (CSI Life). The outlook of the Credit Ratings (rating) is stable. Both companies are domiciled in Omaha, NE.

The ratings reflect CSI and CSI Life’s balance sheet strength, which AM Best assesses as strongest, as well as their adequate operating performance, limited business profile and appropriate enterprise risk management.

Additionally, CSI and CSI Life benefit from very conservative underwriting leverage, a strong liquidity position and the implicit support from their ultimate parent, Berkshire Hathaway Inc. (Berkshire) [NYSE: BRK A and BRK B]. CSI is a specialty insurance company that provides credit card credit insurance and has fronting agreements with multiple insurers.


These positive rating factors are offset by CSI’s elevated common stock leverage. CSI currently writes more non-credit insurance premiums on a gross basis compared with its long-standing credit insurance business. The vast majority of gross premiums written are related to long-term fronting arrangements that the company benefits from while bearing little of the underwriting risk.

The rating affirmations of CSI Life reflect its synergies with CSI. The ratings also reflect the strongest risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and the explicit support provided by its parent, CSI, as well as the implicit support from its ultimate parent, Berkshire. Offsetting rating factors include CSI Life’s limited business profile and lack of product diversification.


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 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

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

View source version on

CONTACT: Guilherme Simoes

Senior Financial Analyst

+1 908 439 2200, ext. 5301

guy.simoes@ambest.comGregory Dickerson

Associate Director

+1 908 439 2200, ext. 5161

gregory.dickerson@ambest.comChristopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.comJim Peavy

Director, Communications

+1 908 439 2200, ext. 5644




Copyright Business Wire 2021.

PUB: 10/07/2021 12:52 PM/DISC: 10/07/2021 12:53 PM