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FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 09, 2014 03:02 PM (EDT)
A.M. Best has commented that the ratings of Old United Casualty Company (OUC) (Shawnee Mission, KS) and Old United Life Insurance Company (OUL) (Phoenix, AZ) are unchanged following the recent announcement that both companies, along with its affiliated auto dealership group, the Van Tuyl Group, have reached a definitive agreement to be acquired by Berkshire Hathaway Inc. (NYSE: BRK.A and BRK.B). OUC and OUL will be acquired by Berkshire Hathaway Inc. through its wholly owned subsidiary, National Indemnity Company. The transactions are anticipated to close in the first quarter of 2015, subject to obtaining approvals from the major auto manufacturers, in addition to other customary closing conditions, including various regulatory approvals.
The Van Tuyl Group is the nation's largest privately owned auto dealership group and currently ranks fifth among all U.S. auto dealership groups. OUC specializes in providing vehicle service contracts to the Van Tuyl Group's automobile dealerships and select outside dealerships. OUL provides credit life and credit Accident and Health products through the Van Tuyl network of automobile dealerships as well as certain outside dealerships.
A.M. Best's comment takes into consideration its understanding of the agreement, which contemplates no changes in management or any change to the businesses being acquired. Upon the close of the transaction, the Van Tuyl Group will be known as Berkshire Hathaway Automotive (BHA). BHA will continue to be led by Larry Van Tuyl, who will become chairman, and the experienced senior management teams of OUC and OUL will remain in place. The acquisition will give BHA access to a financially stronger parent organization, which should further augment its proven strategy of disciplined auto dealership acquisition growth, thereby increasing the retail distribution points for the products offered by OUC and OUL.
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. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.