A.M. Best Assigns Rating to W.R. Berkley Corporation's Forthcoming Issuance of Senior Notes.

OLDWICK, N.J. -- A.M. Best Co. has assigned a debt rating of "bbb" to W.R. Berkley Corporation's (W.R. Berkley) (Greenwich, CT) [NYSE:BER] forthcoming issuance of $250 million 30-year senior unsecured notes. Proceeds from the current offering will be used for general corporate purposes, including the repayment of indebtedness. The rating outlook is stable.

At December 31, 2006, W.R. Berkley's debt-to-total capital (including trust preferred securities) stood at 25%, its lowest level in recent years and at the low end of its targeted range of 25% to 35%. The company's financial leverage has trended lower over the past several years driven by strong earnings benefiting from substantially improved underwriting performance and net investment income growth. However, leverage has remained above industry peers.

With the inclusion of W.R. Berkley's planned $250 million senior note issuance, its proforma debt-to-total capital at year-end 2006 is 29%. While a more competitive property/casualty operating environment will likely pressure 2007 accident year underwriting margins, earnings and cash coverage ratios are expected to remain solid.

W.R. Berkley has historically embraced above average financial leverage, which consistently remains a negative rating factor. Offsetting the concerns associated with this issue are W.R. Berkley's strong earnings, excellent financial flexibility and well-managed capital structure. W.R. Berkley's debt contains no short-term securities or bank debt, which is viewed favorably by A.M. Best.

For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.