Best’s News & Research Service - January 10, 2023 02:46 PM (EST)
AM Best Removes From Under Review With Positive Implications and Upgrades Credit Ratings of Alleghany Corp and Its Affiliates
- January 10, 2023 02:46 PM (EST)
Oldwick //BestWire// - AM Best has removed from under review with positive implications and upgraded the Financial Strength Rating (FSR) to A++ (Superior) from A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “aa+” (Superior) from “aa-” (Superior) of Transatlantic Reinsurance Company (New York, NY) and its subsidiaries (collectively referred to as TransRe). In addition, AM Best has removed from under review with positive implications and upgraded the Long-Term ICRs and the Long-Term Issue Credit Ratings (Long-Term IRs) to “a+” (Excellent) from “a-” (Excellent) of Alleghany Corporation (Alleghany) and Transatlantic Holdings, Inc.. Alleghany and Transatlantic Holdings, Inc. are headquartered in New York, NY.
Concurrently, AM Best has removed from under review with positive implications and upgraded the FSR to A++ (Superior) from A+ (Superior) and the Long-Term ICRs to “aa+” (Superior) from “aa-” (Superior) of RSUI Indemnity Company and its reinsured subsidiaries, collectively referred to as RSUI Group. RSUI Group is headquartered in Atlanta, GA.
At the same time, AM Best has removed from under review with positive implications and upgraded the Long-Term ICR to “a+” (Excellent) from “a” (Excellent) and affirmed the FSR of A (Excellent) of Capitol Indemnity Corporation and its two subsidiaries, collectively referred to as CapSpecialty Insurance Group (CapSpecialty). CapSpecialty is headquartered in Middleton, WI.
The outlook assigned to these Credit Ratings (ratings) is stable. (Please see below for a detailed listing of the companies and ratings.)
The ratings of TransRe, Alleghany Corp., RSUI Group and CapSpecialty were previously placed under review with positive implications following the completion of Berkshire Hathaway Inc.’s (NYSE:BRK.A; BRK.B) acquisition of Alleghany, which took place in October 2022. The rating actions described above follow the completion of AM Best’s review of Berkshire Hathaway’s plans to support the (re)insurance entities that it acquired as part of its purchase of Alleghany. Specifically, Berkshire Hathaway has put in place significant internal reinsurance support for TransRe, RSUI Group and CapSpecialty. This explicit support is complemented by implicit support that is associated with being part of Berkshire Hathaway, which possesses vast financial resources and financial flexibility.
The ratings of TransRe reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, very favorable business profile, appropriate enterprise risk management (ERM), as well as implicit and explicit support provided by Berkshire Hathaway.
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 ERM, as well as implicit and explicit support provided by Berkshire Hathaway.
The ratings of CapSpecialty reflect its balance sheet strength, which AM Best assesses as strongest, as well as its marginal operating performance, neutral business profile and appropriate ERM, as well as implicit and explicit support provided by Berkshire Hathaway.
The FSR has been removed from under review with positive implications and upgraded to A++ (Superior) from A+ (Superior) and the Long-Term ICRs removed from under review with positive implications and upgraded to “aa+” (Superior) from “aa-” (Superior), each with an assigned outlook of stable, for Transatlantic Reinsurance Company and its following subsidiaries:
• TransRe Europe S.A.
• TransRe London Limited
• Fair American Insurance and Reinsurance Company
• Fair American Select Insurance Company
• Calpe Insurance Company Limited
The FSR has been removed from under review with positive implications and upgraded to A++ (Superior) from A+ (Superior) and the Long-Term ICRs removed from under review with positive implications and upgraded to “aa+” (Superior) from “aa-” (Superior), each with an assigned outlook of stable, for the following members of RSUI Group:
• RSUI Indemnity Company
• Landmark American Insurance Company
• Covington Specialty Insurance Company
The FSR of A (Excellent) has been removed from under review with positive implications and affirmed, and the Long-Term ICRs removed from under review with positive implication and upgraded to “a+” (Excellent) from “a” (Excellent), each with an assigned outlook of stable, for the following members of CapSpecialty Insurance Group:
• Capitol Indemnity Corporation
• Platte River Insurance Company
• Capitol Specialty Insurance Corporation
The following Long-Term IRs have been removed from under review with positive implications, upgraded and assigned stable outlooks:
Alleghany Corporation—
— to “a+” (Excellent) from “a-” (Excellent) on $300 million 4.9% senior unsecured notes, due 2044
Transatlantic Holdings Inc.—
— to “a+” (Excellent) from “a-” (Excellent) on $350 million 8% senior unsecured notes, due 2039
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.