A.M. Best Affirms Credit Ratings of Central States Indemnity Co. of Omaha and CSI Life Insurance Company
OLDWICK, N.J.--(BUSINESS WIRE)--Oct 3, 2018--A.M. Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” of Central States Indemnity Co. of Omaha (CSI), and its subsidiary, CSI Life Insurance Company (CSI Life). The outlook of these Credit Ratings (ratings) is stable. Both companies are domiciled in Omaha, NE.
The ratings reflect CSI and CSI Life’s balance sheet strength, which A.M. Best categorizes as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
Additionally, CSI and CSI Life benefit from very conservative underwriting leverage, as well as the implicit support from its ultimate parent, Berkshire Hathaway, Inc. (Berkshire) [NYSE: BRK A and BRK B]. CSI is a specialty insurance company that provides Medicare Supplement insurance, credit card credit insurance and agricultural equipment coverage.
These positive rating factors are offset by CSI’s elevated investment leverage, new business strain and near-term execution risk. CSI currently writes more non-credit insurance premiums compared with its long-standing credit insurance business.
The rating affirmations of CSI Life reflect its synergies with CSI. The ratings also reflect the strong risk-adjusted capitalization and the explicit support provided by its parent, CSI, as well as the implicit support from its ultimate parent, Berkshire. Offsetting rating factors include CSI Life’s limited business profile, lack of product diversification and the competitive Medicare Supplement marketplace.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view .
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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CONTACT: A.M. Best
Guilherme (Guy) Monteiro Simoes
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Robert B. DeRose
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KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEBRASKA NEW JERSEY
INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE INSURANCE
SOURCE: A.M. Best
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PUB: 10/03/2018 12:08 PM/DISC: 10/03/2018 12:08 PM