OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best Co. has assigned a financial strength rating of A
(Excellent) and an issuer credit rating of “a” to CSILife
Insurance Company(CSI Life) (Omaha, NE). The outlook assigned to
both ratings is stable.
The ratings reflect CSI Life’s adequate risk-adjusted capitalization,
the explicit support provided by its parent, Central States Indemnity
Co. of Omaha(CSI), as well as the benefits made available though
its ultimate parent, Berkshire Hathaway, Inc. CSI Life’s in-force
book of business relates to assumed life business written in conjunction
with certain credit card disability, involuntary unemployment and family
leave insurance issued by CSI. CSI Life’s business plan includes
underwriting non-credit individual insurance products on a direct basis.
Offsetting rating factors include CSI Life’s limited business profile
and a lack of product diversification. CSI Life’s credit insurance
business has been contracting in line with industry trends in the credit
marketplace. CSI currently is writing non-credit insurance products on a
direct basis (Medicare supplement), but CSI Life has yet to begin
writing new business.
Upward rating actions for CSI Life could be driven by further
integration into CSI’s strategy and successful implementation of its
business plan. Key rating drivers that may lead to negative rating
actions include a material deterioration in CSI Life’s operating
performance, lack of capital support from the parent company or
substantial deterioration in risk-adjusted capitalization as measured by
Best’s Capital Adequacy Ratio (BCAR).
The methodology used in determining these ratings is Best’s Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best’s rating process and contains the different rating criteria
employed in the rating process. Key criteria utilized include: “Risk
Management and the Rating Process for Insurance Companies”;
Understanding BCAR for Life/Health Insurers”; and “Rating Members of
Insurance Groups.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world’s oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS
A.M. Best Co.Edward Kohlberg, 908-439-2200, ext. 5664Financial
Pargeans, 908-439-2200, ext. 5359Assistant Vice Presidentwilliam.firstname.lastname@example.orgRachelle
Morrow, 908-439-2200, ext. 5378Senior Manager, Public
Peavy, 908-439-2200, ext. 5644Assistant Vice President,
Source: A.M. Best Co.