-Berkley National Insurance's ratings unaffected by ownership modifications - AM Best.
BANKING AND CREDIT NEWS-January 14, 2011--Berkley National Insurance's ratings unaffected by ownership modifications - AM Best(C)2011 M2 COMMUNICATIONS http://www.m2.com
14 January 2011 - AM Best has commented that the financial strength rating of A+ (superior) and issuer credit rating of "aa-" of US Berkley National Insurance Co are unchanged following internal modifications effected by WR Berkley Corp (NYSE:WRB) with respect to reinsurance and ownership.
The outlook for these ratings is "stable".
Effective 27 July 2010, direct ownership of Berkley National was transferred from Berkley Regional Insurance Co (BRIC) to Berkley Insurance Co (BIC), AM Best specified.
In addition, WR Berkley implemented a change in reinsurance whereby BIC currently supports Berkley National through quota share reinsurance, replacing BRIC.
Under the terms of the quota share, BIC reinsures 90% of Berkley National's premiums and losses effective 1 August 2010. The limitation in the reinsurance cession to 90% is due to regulatory restrictions, the agency said.
While this agreement does not sufficiently meet the criteria for a reinsured rating, Berkley National is afforded group rating status and is now a member of Berkley Insurance Group, which has resulted in the assignment of a Financial Size Category of XV to the company, the analysts elaborated.
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|Publication:||M2 Banking & Credit News (BCN)|
|Date:||Jan 14, 2011|
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