July 23, 2024 Newswires

AM Best Affirms Credit Ratings of Old United Life Insurance Company

Business Wire

OLDWICK, N.J.--(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.