Printer Friendly

-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

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.

((Comments on this story may be sent to>PDJanuary 14, 2011>JNBANKING AND CREDIT NEWS.PRICEDATENOT APPLICABLE.DAY

COPYRIGHT 2011 Normans Media Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2011 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:M2 Banking & Credit News (BCN)
Date:Jan 14, 2011
Previous Article:-RAM Ratings maintains AA3, P1 ratings on PINS Capital's ICP/IMTN Programme.
Next Article:-CARE gives grade 3 financial strenght rating to Bharati Shipyard.

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters