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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 02, 2017 12:22 PM (EDT)
A.M. Best has affirmed the Financial Strength Rating of A++ (Superior) and the Long-Term Issuer Credit Ratings of “aa+” of United States Liability Insurance Company (USLI) (Wayne, PA) and its subsidiaries: Mount Vernon Fire Insurance Company (MVF) (Wayne, PA), U.S. Underwriters Insurance Company (USU) (Bismarck, ND) Mount Vernon Specialty Insurance Company, and Radnor Specialty Insurance Company (both domiciled in Omaha, NE). The outlook of these Credit Ratings (ratings) is stable.
The ratings of the insurance operating companies reflect their extended trends of underwriting and operating profitability, superior risk-adjusted capital position, very strong market presence and conservative reserve positions. Additional positive rating factors include an exceptional diversification in their books of business as it regards limiting concentration; proactive claims management philosophy and commitment to customer service. Furthermore, the companies have extensive employee training and retention programs that translate into a strong corporate culture of success.
Furthermore, these ratings continue to benefit from implicit and explicit support provided to USLI and its subsidiaries by their ultimate parent, Berkshire Hathaway Inc. (Berkshire) [NYSE: BRK-A and BRK-B].
This support, for some of the operating companies, is in the form of significant reinsurance treaties with National Indemnity Company, a Berkshire subsidiary. In addition to this agreement, Berkshire has established an extended track record of supporting its member companies.
These positive rating factors are partially offset by the above average investment leverage recorded by the group, which could be affected by sudden adverse changes in market conditions. A.M. Best also continues to monitor the organizational structure and market changes implemented at USLI with regard to the Devon Park Specialty branded companies.
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 Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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