AM Best Assigns Credit Ratings to CL Life and Annuity Insurance Company

OLDWICK, NJ, September 15, 2022–(BUSINESS WIRE)–AM Best has assigned a Financial Strength Rating (FSR) of B++ (Good) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb+” (Good) to CL Life and Annuity Insurance Company (CL Life) (Fort Worth, TX). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect CL Life’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

CL Life, which was launched in August 2022, initially has been capitalized with approximately $10 million, and is projected to have the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), with a low level of initial business and high reinsurance leverage in the first couple of years of operations. The company anticipates receiving additional funding to support the projected annuity business growth. CL Life expects its projected new business growth to be measured, ensuring that capital remains at targeted levels while maintaining adequate liquidity under their established asset-liability management framework. The company’s investment portfolio is expected to focus on investment-grade private corporate credit, as well as first-lien real estate mortgages, with an allocation higher than the industry average, relying on the investment expertise of the parent company, Crestline Investors, Inc.

CL Life does not have any established or projected market position as of yet, with a high degree of competition currently in the annuity marketplace as a headwind toward execution of its business plan.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and permanent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see

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AM Best Upgrades Credit Ratings of National American Insurance Company

OLDWICK, NJ, September 15, 2022–(BUSINESS WIRE)–AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” (Excellent) from “a-” (Excellent) of National American Insurance Company (NAICO) (Chandler , OK). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.

The ratings reflect NAICO’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The upgrade of NAICO’s ratings is based on the revision of its operating performance assessment to strong from adequate, primarily driven by consistent positive underwriting results over the past decade. In addition, this was aided by the company’s pure loss ratio, which exceeds the industry composite average by over 10 percentage points, but is partially offset by an elevated underwriting expense ratio. Furthermore, the company has reported profitable pre-tax operating return measures that are either comparable or have outperformed its industry composite averages on a five- and 10-year average basis, as well as growing net investment income generated over the past five years, reflective of steady growth in the invested asset base driven by positive operating cash flows. NAICO’s positive underwriting performance can be attributed to management’s implementation of loss control mechanisms that allow the company to remain selective in underwriting new accounts, along with management’s conservative market approach as demonstrated by its willingness to release unprofitable accounts.

NAICO’s balance sheet strength assessment of very strong reflects its risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). Additional factors are the company’s conservative and consistent reserving practices. prudent investment portfolio, solid liquidity measures, which are enhanced by positive underwriting and operating cash flows, as well as

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AM Best Affirms Credit Ratings of Arabia Insurance Company sal

LONDON, September 09, 2022–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of Arabia Insurance Company sal (AIC) (Lebanon). The outlook of these Credit Ratings (ratings) is negative.

The ratings reflect AIC’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The negative outlooks reflect ongoing country risk pressures on AIC’s credit profile stemming from its exposure to Lebanon, where its head office is located and approximately 8% of total investments were held and 3% of revenues originated in 2021. The negative outlooks also factor in the company’s use of debt to support its operations, and the significant refinancing risk associated with its exposure to debt with a short maturity.

AIC’s balance sheet strength is underpinned by risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The assessment factors in the solid geographic diversification of AIC’s exposures in terms of operations and assets, which to some extent insulates the group from the very high political, economic and financial system risks in Lebanon. A partially offsetting rating factor is AIC’s limited capital fungibility, constrained by increased regulatory solvency requirements in the jurisdictions in which the group operates.

AIC has a track record of adequate operating performance, demonstrated by a five-year (2017-2021) weighted average return on equity (ROE) of 1.2%. Results have deteriorated in the past two years, negatively impacted by one-off events, including the explosion in the port of Beirut in 2020, and the devaluation of the Lebanese pound in 2021, translating in ROEs of -6.2% and 0.0% for each of these years, respectively. AM Best expects prospective operating performance to improve and

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AM Best Affirms Credit Ratings of United States Liability Insurance Company and Its Subsidiaries

OLDWICK, NJ, August 24, 2022–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of A++ (Superior) and the Long-Term Issuer Credit Ratings of “aa+” (Superior) of United States Liability Insurance Company (USLI) and its subsidiaries: Mount Vernon Fire Insurance Company (MVF), US Underwriters Insurance Company (USU) (Bismarck, ND), Mount Vernon Specialty Insurance Company and Radnor Specialty Insurance Company. The outlook of these Credit Ratings (ratings) is stable. All companies are domiciled in Omaha, NE, unless otherwise specified.

The ratings reflect the insurance operating companies’ consolidated balance sheet strength, which AM Best assesses as strongest, as well as their very strong operating performance, neutral business profile and appropriate enterprise risk management.

These assessments are evidenced by USLI’s extended trends of underwriting and overall operating profitability, superior risk-adjusted capital position, relevant market presence and conservative reserve positions. Additional positive rating factors include a high level of diversification in the companies’ books of business with regard to concentration limits, sales channels, proactive claims management philosophy and commitment to customer service. Furthermore, these ratings continue to benefit from implicit support provided to USLI and its subsidiaries by their ultimate parent, Berkshire Hathaway Inc. (Berkshire) [NYSE: BRK-A and BRK-B]and explicit support from their affiliate, National Indemnity Company.

This support for some of the operating companies is in the form of significant reinsurance treaties with National Indemnity Company, a Berkshire subsidiary. In addition to this agreement, Berkshire has established a long-term track record of supporting its member companies.

In the second quarter of 2022, USLI experienced volatility in its investment portfolio due to recent stock market behavior. Any potential concerns from the resulting surplus decline are mitigated by the group’s strongest risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), which provides ample cushion to absorb occasional volatility in the capital

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AM Best Downgrades Issuer Credit Rating of Cameron Mutual Insurance Company

OLDWICK, NJ, August 19, 2022–(BUSINESS WIRE)–AM Best has downgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bb” (Fair) from “bb+” (Fair) and affirmed the Financial Strength Rating (FSR) of B (Fair) of Cameron Mutual Insurance Company (Cameron Mutual) (Cameron, MO). The outlook of the FSR has been revised to negative from stable while the outlook of the Long-Term ICR is negative.

The Credit Ratings (ratings) reflect Cameron Mutual’s balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and marginal enterprise risk management (ERM).

The Long-Term ICR downgrade reflects ongoing surplus erosion, which has weakened Cameron Mutual’s overall balance sheet strength. Severe weather events in 2022 drove the $6.4 million decline in capital through the first six months. Furthermore, the surplus decline influenced the level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), which is assessed as strong, from very strong at last review. The downgrade of the Long-Term ICR further considers underwriting leverage metrics that are well-above the private passenger standard auto and homeowners composite. The negative outlooks reflect ongoing deterioration in the company’s overall balance sheet strength and consistently unfavorable operating results. Marginal operating performance continues to erode Cameron Mutual’s capital position, creating greater sensitivity in risk-adjusted capitalization, as measured by BCAR. Furthermore, while management continues to refine the business profile in an effort to reduce exposures and correct performance, risk mitigation strategies have yet to gain material traction.

Cameron Mutual writes personal auto, commercial multi-peril, farmowners and homeowners in three states, primarily Missouri. Management has recently emphasized de-risking the portfolio as it relates to the more volatile segments of the book of business, as well as improving rating algorithms with more granularity and pushing rate increases where

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AM Best Affirms Credit Ratings of Emirates Insurance Company PJSC

LONDON, August 04, 2022–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Emirates Insurance Company PJSC (EIC) (United Arab Emirates). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect EIC’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

EIC’s balance sheet strength is underpinned by risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by low retained underwriting risk. The company’s balance sheet strength assessment also benefits from its good liquidity position and prudent reserving practices. Partially offsetting balance sheet strength factors include a degree of concentration within the company’s investment portfolio to equity holdings in the UAE, which EIC is addressing by diversifying its equity investments, and its moderately high reliance on reinsurance. In AM Best’s view, the credit risk associated with the latter is mitigated partially by the use of reinsurers of sound financial strength.

EIC has a track record of strong operating performance, reporting a five-year (2017-2021) weighted average return on equity of 9.5%. The company has demonstrated strong underwriting performance over time, as evidenced by a five-year (2017-2021) weighted average combined ratio of 90.1%. However, 2021 was a more challenging year for EIC, with the combined ratio reaching 96.3% (2020: 89.0%), which is above the company’s longer term average.

EIC maintains a well-established brand and position in the UAE insurance market. In 2021, the company generated gross written premium (GWP) of AED 1.1 billion (USD 304.5 million) and ranked as the sixth-largest insurer in its domestic market, based on GWP. EIC writes a diversified portfolio of non-life insurance and reinsurance business,

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AM Best Affirms Credit Ratings of China Merchants Insurance Company Limited

HONG KONG, July 22, 2022–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of China Merchants Insurance Company Limited (CMI) (Hong Kong). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect CMI’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. The ratings also reflect the parental support from China Merchants Group Limited (CMG), including capital support, brand recognition, investment management and risk oversight.

CMI’s very strong balance sheet strength assessment is underpinned by its strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s capital and surplus continued to grow organically in 2021 through full retention of operating profits. The company maintained a conservative investment strategy, with a majority of its assets allocated to cash, bank deposits and short-duration bonds. Premium cession increased as the proportion of commercial business enlarged. The reinsurance program remains comprehensive with reinsurers of good credit quality.

CMI’s operating performance was positive in 2021, with a profit after tax of HKD 29 million (USD 3.7 million), supported by positive underwriting and investment results. The company has been profitable over the past five years with an average return on equity of 4.2% (2017-2021). Underwriting results showed a favorable improvement in 2021, with a net combined ratio of 84.9%, mainly supported by better claims experience during the year. Increased reinsurance commission income also helped to offset the upward pressure in the management expense ratio. A growing stream of interest income over the past five years also contributed to the company’s positive and stable investment results, although yields remain low.

CMI maintained a stable-yet-small market presence

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