AM Best Affirms Credit Ratings of W. R. Berkley Corporation and Its Subsidiaries

AM Best has affirmed the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) of W. R. Berkley Corporation (W. R. Berkley) (Greenwich, CT) [NYSE: WRB] and all associated Long-Term Issue Credit Ratings (Long-Term IRs) and indicative Long-Term IRs for securities issued by W. R. Berkley. At the same time, AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term ICRs of “aa-” (Superior) of Berkley Insurance Company (Wilmington, DE) and its reinsured subsidiaries and affiliates, collectively referred to as W. R. Berkley Insurance Group (Berkley Group). AM Best also has affirmed the FSR of A+ (Superior) and the Long-Term ICR of “aa-” (Superior) of Berkley Life and Health Insurance Company (Berkley Life and Health) (Urbandale, IA). The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed list of the companies and ratings).

Concurrently, AM Best has assigned an FSR of A+ (Superior) and a Long-Term ICR of “aa-” (Superior) to W. R. Berkley’s newly reinsured affiliate, Berkley Prestige Insurance Company (Urbandale, IA). The outlook assigned to these ratings is stable.

The ratings of Berkley Group reflect its balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).

Berkley Group’s balance sheet strength assessment is anchored by its consistent strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). The company continues to demonstrate its ability to access capital markets as necessary and has continued to be focused on creating enhanced permanency of capital and lower cost of debt. Debt leverage has trended downward over the past five-year period and was 21.5%, adjusted as of year-end 2022. The group’s interest coverage and liquidity metrics remain strong. Berkley Group effectively maintains a diversified portfolio of investments to support its liabilities and is focused on creating the most favorable return while maintaining its risk tolerance levels.

The group continues to maintain favorable market share in its core lines of business, as well as growth organically through new businesses and opportunities. Berkley Group’s recognized presence in domestic and international markets and its diversity of distribution and operations are key factors in its favorable top and bottom-line trends reported over the past five-year period. The group’s historically consistent operating results and profitability metrics point to nimble underwriting and pricing discipline, as well as effective risk management expertise. Berkley Group reported net premium growth across most of its core lines of business in the first quarter of 2023, with GAAP return on equity of 17.4%. Berkley Group’s effective ERM practices and risk modelling capabilities are supportive of its current investment and operational risks as demonstrated by the lack of volatility of financial results and overall capitalization of the enterprise.