AM Best Affirms Credit Ratings of Old United Life insurance Company (OUL)
AM Best Affirms Credit Ratings of Old United Life insurance Company
AM Best, a global credit rating agency specializing in the insurance industry, has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” (Excellent) of Old United Life insurance Company (OUL). The outlook of these Credit Ratings is stable. OUL, headquartered in Merriam, KS, benefits from the implicit support of the greater organization, particularly from National Indemnity Company.
The ratings of OUL reflect its very strong balance sheet strength, adequate operating performance, limited business profile, and appropriate enterprise risk management. OUL’s balance sheet strength assessment is driven by favorable risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), and strong liquidity metrics. The company has a record of consistently profitable operating results, driven by both underwriting and investment incomes.
In 2023, OUL saw a notable improvement in portfolio yield due to the rise in interest rates, which had a positive impact on the company’s short-term holdings. OUL writes credit life and credit accident and health insurance primarily to affiliated automobile dealerships owned by Berkshire Hathaway Automotive. Despite being authorized to write business in 47 states and the District of Columbia, the vast majority of OUL’s business is written in Texas, Arizona, and Michigan.
AM Best continues to assess the business profile of OUL as limited due to its geographic and product concentration. OUL benefits from being affiliated with Berkshire Hathaway Inc., its ultimate parent company. For more information on the Credit Ratings of OUL, visit AM Best’s website.
AM Best is headquartered in the United States and does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore, and Mexico City. For more information, visit www.ambest.com.
Contact:
Kevin Varvaro
Senior Financial Analyst
+1 908 882 2410
kevin.varvaro@ambest.com
Kate Steffanelli
Associate Director
+1 908 882 2337
kate.steffanelli@ambest.com
Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com
Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com
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