CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - APRIL 30, 2010 12:00 AM (EDT)
A.M. Best Co. has assigned a financial strength rating (FSR) of A+ (Superior) and an issuer credit rating (ICR) of "aa-" to Berkley Life and Health Insurance Company (Berkley Life) (Urbandale, Iowa). Berkley Life is a member company of W. R. Berkley Corporation (W. R. Berkley) [NYSE: WRB]. The outlook for both ratings is stable.
Berkley Life's ratings reflect W. R. Berkley Corporation's explicit net worth maintenance agreement and the progression of Berkley Life's integration within the W. R. Berkley organization. Berkley Insurance Group currently has an FSR of A+ (Superior) and an ICR of "aa-". Berkley Life was established for the purpose of transferring accident and health business—primarily stop-loss—from existing W. R. Berkley property/casualty insurers to a fully licensed life/health insurance company to improve product identity and distribution relationships. The business is produced by Berkley Accident and Health, LLC, which began writing health insurance coverages in 2006.
Berkley Life currently has a lack of actual operations, is in the process of filing products in various states, and thus has yet to achieve critical mass. Additionally, A.M. Best believes the company will face challenges in the current soft stop-loss market. Current pricing dynamics suggest a competitive stop-loss market with generally modest growth in new premium revenue.
For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit Best's Ratings & Analysis.
The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at Best's Credit Rating Methodoogy.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.