{"id":866632,"date":"2025-07-03T17:35:06","date_gmt":"2025-07-03T21:35:06","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-affirms-credit-ratings-of-w-r-berkley-corporation-and-its-subsidiaries\/"},"modified":"2025-07-03T17:35:06","modified_gmt":"2025-07-03T21:35:06","slug":"am-best-affirms-credit-ratings-of-w-r-berkley-corporation-and-its-subsidiaries","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-affirms-credit-ratings-of-w-r-berkley-corporation-and-its-subsidiaries\/","title":{"rendered":"AM Best Affirms Credit Ratings of W. R. Berkley Corporation and Its Subsidiaries"},"content":{"rendered":"

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AM Best Affirms Credit Ratings of W. R. Berkley Corporation and Its Subsidiaries<\/b><\/p>\n

OLDWICK, N.J.–(BUSINESS WIRE<\/a>)–AM Best <\/b>has affirmed the Long-Term Issuer Credit Rating (Long-Term ICR) of \u201ca-\u201d (Excellent) of W. R. Berkley Corporation (W. R. Berkley) (Greenwich, CT) [NYSE: WRB] and all associated Long-Term Issue Ratings (Long-Term IRs) and indicative Long-Term IRs for securities issued by W. R. Berkley. At the same time, AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term ICRs of \u201caa-\u201d (Superior) of Berkley Insurance Company (Wilmington, DE) and its reinsured subsidiaries and affiliates, collectively referred to as W. R. Berkley Insurance Group (Berkley Group). AM Best also has affirmed the FSR of A+ (Superior) and the Long-Term ICR of \u201caa-\u201d (Superior) of Berkley Life and Health Insurance Company (Berkley Life and Health) (Urbandale, IA). The outlook of the FSR is stable while the outlook of the Long-Term ICR is positive. (See below for a detailed list of the companies and ratings.)<\/p>\n

\nThe positive outlook for the Long-Term ICR reflects the Berkley Group\u2019s favorable operating performance and balance sheet metrics. Berkley Group has grown its GAAP surplus organically over the most recent 10-year period. Additionally, Berkley Group has improved its financial leverage.<\/p>\n

\nThe Credit Ratings (ratings) of the Berkley Group reflect its balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).<\/p>\n

\nBerkley Group\u2019s balance sheet strength assessment is anchored by its risk-adjusted capitalization consistently being at the strongest level, as measured by Best\u2019s Capital Adequacy Ratio (BCAR). Debt leverage has trended downward over the past five years and was 19.1%, adjusted as of year-end 2024. The group\u2019s interest coverage and liquidity metrics remain strong. Berkley Group effectively maintains a diversified investment portfolio to support its liabilities and is focused on creating the most favorable return while maintaining its risk tolerance levels.<\/p>\n

\nThe group continues to maintain its favorable market share in its core lines of business, as well as continuing to grow organically through new businesses and opportunities. The group\u2019s historically consistent operating results and profitability metrics point to agile underwriting and pricing discipline, as well as effective risk management expertise. Berkley Group reported net premium growth across most of its core business in the first quarter of 2025, with a GAAP return-on-equity (ROE) ratio of 19.9% and GAAP operating ROE of 19.3%. Berkley Group\u2019s effective ERM practices and risk-modeling capabilities are supportive of its current investment and operational risks as demonstrated by its lack of volatility in its financial results and the enterprise\u2019s overall capitalization.<\/p>\n

\nThe ratings of Berkley Life and Health reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate ERM. The ratings also reflect the financial and operational support of the parent company.<\/p>\n

\nBerkley Life and Health\u2019s balance sheet strength assessment is supported by its strongest level of risk-adjusted capitalization, as measured by BCAR. Despite paying a $75 million dividend to its parent in 2024, the company still maintained its BCAR in the strongest assessment level while reporting favorable liquidity ratios and positive cash flow at year-end 2024. It continues to maintain a conservative, high-quality investment portfolio consisting of fixed-income securities and cash & short-term investments.<\/p>\n

\nBerkley Life and Health has grown net premium annually over the last five years driven by new and renewal sales of its group captive and medical stop-loss products. Except for 2024, the company has reported increasing net underwriting income annually during this period, with slightly lower net underwriting income reported at year-end 2024.<\/p>\n

\nWhile Berkley Life and Health is a leader in the group captive market and maintains a niche in the small group medical stop-loss space, it operates in a highly competitive medical stop-loss market dominated by larger national insurers. The company benefits from explicit and implicit support provided by W. R. Berkley, and is fully integrated into the parent\u2019s strategy, operations and ERM.<\/p>\n

\nThe FSR of A+ (Superior) and the Long-Term ICRs of \u201caa-\u201d (Superior) have been affirmed, with a stable outlook for the FSR and positive outlooks for the Long-Term ICRs for the following members of W. R. Berkley Insurance Group:<\/p>\n