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FOR IMMEDIATE RELEASE
OLDWICK - MAY 30, 2014 03:43 PM (EDT)
A.M. Best has affirmed the financial strength rating of A++ (Superior) and issuer credit ratings of "aa+" of United States Liability Company (USLI) (Wayne, PA) and its subsidiaries, Mount Vernon Fire Insurance Company (MVF) (Wayne, PA), U.S. Underwriters Insurance Company (USU) (Bismarck, ND), and Mount Vernon Specialty Insurance Company (MVS) (Wayne, PA). The outlook for all ratings is stable.
These ratings reflect USLI's excellent capital strength, extended trends of favorable operating performance and established market position. The group also benefits from outstanding underwriting performance, driven by disciplined underwriting standards and a proactive claims-handling philosophy. The ratings also consider the organization's focus on service, multiple platforms for the customers to access coverage and effective sales and marketing. USLI also benefits from a conservative loss reserve strategy and a prudent catastrophe management philosophy.
Furthermore, these ratings continue to benefit from the 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 is in the form of a significant reinsurance transaction with National Indemnity Company, a Berkshire subsidiary. In addition to this agreement, Berkshire has established an extended track record of supporting its member companies.
Partially offsetting these positive rating factors is the above average concentration levels in select investments. This factor is somewhat muted by the high quality of the investments.
The outlook is based on A.M. Best's expectation of continued excellent operating performance and balance sheet strength over extended time periods.
Downward rating pressure could occur if risk-adjusted capital and/or operating performance fall markedly short of A.M. Best's expectations, including but not limited to deterioration in loss trends or material disruptions to the current business strategy. In addition, because of the breadth of the relationship between this group and other Berkshire Hathaway Inc. companies, changes in the ratings or outlooks of any of the associated insurance companies may impact the ratings of the members of the group or related entities.
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.
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.