AM Best announces that it has upgraded the Long Term Issuer Rating (Long Term ICR) of securities issued by WR Berkley Corporation (WR Berkley) from ‘a-‘ (Excellent) to ‘a’ (Excellent), as well as all related Long-Term Issue Ratings (Long-Term IR) and Indicative Long-Term IR.
AM Best also upgraded the Long-Term ICR to “aa” (Superior) from “aa-” (Superior) and affirmed the A+ (Superior) Financial Strength Rating (FSR) of Berkley Insurance Company (Wilmington, Del.) and its reinsurance subsidiaries and affiliates (collectively, WR Berkley Insurance Group).
Additionally, AM Best upgraded Berkeley Life & Health Insurance Company’s long-term ICR to “aa” (Superior) from “aa-” (Superior) and affirmed its FSR as A+ (Superior).
The outlook for the long-term ICR has been revised to stable from positive, as has the outlook for the FSR.
AM Best noted that Berkeley Group’s ratings reflect the strength of its balance sheet, which it assesses as strongest, in addition to strong operating performance, good business profile and appropriate enterprise risk management (ERM).
The long-term ICR upgrade reflects improving fundamentals of balance sheet strength, driven by continued strong returns supported by strong underwriting performance and a strong portfolio, sustained organic earnings growth over the past decade, and strong debt leverage.
Berkeley Group’s balance sheet strength assessment is based on its strongest risk-adjusted capital, as measured by Best’s Capital Adequacy Ratio (BCAR).
The group maintains a diversified investment portfolio to support its liabilities and is committed to delivering good returns while remaining within risk tolerance.
The ratings agency noted that Berkeley Group maintains good market share in its core business areas while growing organically through new businesses and opportunities. The group’s strong operating performance and profitability metrics are driven by flexible underwriting and pricing discipline and effective risk management expertise.
AM Best expects the group to maintain its balance sheet assessment in the strongest range over the medium term, with strong operating results supporting earnings growth.
Berkley Life and Health’s ratings reflect its balance sheet strength (rated strongest by AM Best), as well as strong operating performance, neutral business profile and appropriate enterprise risk management. They also reflect the financial and operational support of their parent companies.
Berkley Life and Health’s long-term ICR upgrade reflects improved operating performance over the past five years, driven by solid organic premium growth, continued underwriting revenue, and strong return on equity and return on earnings.
Berkley Life and Health’s assessment of balance sheet strength is supported by its highest level of risk-adjusted capital as measured by BCAR. The company maintained its strongest category BCAR while boasting good liquidity ratios and positive cash flow through the end of 2025. The firm continues to hold a conservative, high-quality portfolio composed of fixed-income securities as well as cash and short-term investments.
Berkley Life and Health benefits from WR Berkley’s explicit and implicit support and is fully integrated into the parent company’s operations, strategic plans and ERM framework.
