AM Best Affirms Credit Ratings of Old United Life Insurance Company
23 Julio 2024 - 3:15PM
Business Wire
AM Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Rating of “a+”
(Excellent) of Old United Life Insurance Company (OUL). The outlook
of these Credit Ratings (ratings) is stable. The company is
headquartered in Merriam, KS.
The ratings of OUL reflect its balance sheet strength, which AM
Best assesses as very strong, as well as its adequate operating
performance, limited business profile and appropriate enterprise
risk management. The ratings also reflect the implicit support of
the greater organization, particularly from National Indemnity
Company.
OUL’s balance sheet strength assessment is driven by favorable
risk-adjusted capitalization being at the strongest level, as
measured by Best’s Capital Adequacy Ratio (BCAR), bolstered further
by strong liquidity metrics. The company has a record of
consistently profitable operating results, driven by both
underwriting and investment incomes with a notable improvement in
portfolio yield for 2023, due to the rise in interest rates having
a positive impact on the company’s short-term holdings, which
represent nearly half of all invested assets. The company benefits
from the implicit support of the greater organization and being
affiliated with Berkshire Hathaway Inc., its ultimate parent.
OUL writes credit life and credit accident and health insurance
primarily to affiliated automobile dealerships owned by Berkshire
Hathaway Automotive. Despite being authorized to write business in
47 states and the District of Columbia the vast majority of OUL’s
business is written in Texas, Arizona and Michigan. It is partly
due to this geographic and product concentration that AM Best
continues to assess the business profile of OUL as limited.
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 Performance
Assessments, 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.
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Kevin Varvaro Senior Financial Analyst +1 908
882 2410 kevin.varvaro@ambest.com Kate Steffanelli
Associate Director +1 908 882 2337
kate.steffanelli@ambest.com Christopher Sharkey Associate
Director, Public Relations +1 908 882 2310
christopher.sharkey@ambest.com Al Slavin Senior Public
Relations Specialist +1 908 882 2318
al.slavin@ambest.com