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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 United States Liability Insurance Company and Its Subsidiaries

August 17, 2021 GMT

OLDWICK, N.J.--(BUSINESS WIRE)--Aug 17, 2021--

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) (Wayne, PA) and its subsidiaries: Mount Vernon Fire Insurance Company (MVF) (Wayne, PA), U.S. Underwriters Insurance Company (USU) (Bismarck, ND), Mount Vernon Specialty Insurance Company and Radnor Specialty Insurance Company (both domiciled in Omaha, NE). The outlook of these Credit Ratings (ratings) is stable.

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. These assessments are evidenced by USLI’s extended trends of underwriting and operating profitability, 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, 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.

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This support for some of the operating companies is in the form of significant reinsurance treaties with National Indemnity Company, a Berkshire subsidiary. In addition to this agreement, Berkshire has established an extended track record of supporting its member companies.

In 2019, the group experienced slight deterioration in underwriting ratios due to losses in their personal umbrella product in certain territories. In response, the group has made key underwriting, limits and pricing changes to personal umbrella. These changes were successful, and as a result, the group’s underwriting results normalized. In 2020, the group has experienced balance sheet volatility due to equity market devaluations related to COVID-19. The investments recovered in value from the low point in 2020. Nonetheless, the group reallocated some of its stock investments into high quality, short-term fixed income. USLI continues to be well-positioned to accept investment portfolio fluctuations risk due to the low underwriting leverage and the investment managers’ long history of success in volatile markets.

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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 www.ambest.com.

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

View source version on businesswire.com:https://www.businesswire.com/news/home/20210817005757/en/

CONTACT: Guilherme Monteiro 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

james.peavy@ambest.com

KEYWORD: EUROPE UNITED STATES NORTH AMERICA NEW YORK NEW JERSEY

INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE FINANCE

SOURCE: AM Best

Copyright Business Wire 2021.

PUB: 08/17/2021 11:34 AM/DISC: 08/17/2021 11:34 AM

http://www.businesswire.com/news/home/20210817005757/en