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 RESERVED.

A.M. Best Co.
Edward Kohlberg, 908-439-2200, ext. 5664
Financial Analyst
edward.kohlberg@ambest.com
or
William Pargeans, 908-439-2200, ext. 5359
Assistant Vice President
william.pargeans@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

Source: A.M. Best Co.