AM Best Affirms Credit Ratings of RSUI Group’s Members

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has affirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “aa+” (Superior) of RSUI Indemnity Company and its reinsured subsidiaries, collectively referred to as RSUI Group (RSUI). RSUI Group is headquartered in Atlanta, GA. The outlook of these Credit Ratings (ratings) is stable.

The ratings of RSUI reflect the group’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management. The ratings also reflect implicit and explicit support provided by Berkshire Hathaway Inc.

RSUI has maintained risk-adjusted capitalization consistently at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), despite the payment of significant dividends and the impact of unrealized investment losses in 2022. RSUI continues to report favorable loss reserve development, although the magnitude of reserve releases slowed in 2022, compared with the previous year. The group’s balance sheet strength assessment also benefits from significant internal reinsurance support provided by one of its affiliated companies, National Indemnity Company, and from the vast financial flexibility of its ultimate parent company, Berkshire Hathaway Inc. AM Best expects that over time, RSUI’s investment portfolio, which currently has a modest equity position, will see an increase in allocations to common stocks with high intrinsic value, in accordance with Berkshire Hathaway Inc.’s investment philosophy.

The group’s overall operating performance has exceeded AM Best’s surplus lines industry composite for a prolonged period. Operating results improved significantly in the first nine months of 2023 from already strong levels in the prior year, driven by profitable underwriting results and the benefit of significantly higher reinvestment rates on the group’s fixed income portfolio.

RSUI’s favorable business profile assessment reflects the group’s track record of maintaining a market-leading position and better-than-peer results in the competitive surplus lines market through hard and soft market cycles.

The FSR of A++ (Superior) and the Long-Term ICRs of “aa+” (Superior) have been affirmed with stable outlooks for the following members of RSUI Group:

• RSUI Indemnity Company

• Landmark American Insurance Company

• Covington Specialty Insurance Company

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.

Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Guilherme Monteiro Simoes, CFA

Senior Financial Analyst

+1 908 882 2317

[email protected]

Christopher Sharkey
Associate Director, Public Relations

+1 908 882 2310

[email protected]

Gregory Dickerson
Director

+1 908 882 1737

[email protected]

Al Slavin
Senior Public Relations Specialist

+1 908 882 2318

[email protected]

Source: AM Best