AM Best Affirms Credit Ratings of Old United Casualty Company and Old United Life Insurance Company
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of "a+" (Excellent) of Old United Casualty Company (OUC). At the same time, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of "a+" (Excellent) of Old United Life Insurance Company (OUL). The outlook of these Credit Ratings (ratings) is stable. Both companies are headquartered in Overland Park, KS.
The ratings of OUC reflect the company’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).
OUC’s balance sheet strength assessment is assessed at the strongest level. This is driven by its risk-adjusted capitalization, which is consistently maintained at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as its favorable underwriting leverage position, conservative investment portfolio and unearned premium reserve equity. The company has a track record of stable and strong operating performance with consistently profitable underwriting results supported by investment income. The company benefits from being affiliated with Berkshire Hathaway Inc. (Berkshire) (NYSE:BRK), its ultimate parent, which manages OUC’s investment portfolio. The company’s investments are mainly in cash and readily marketable bonds and stocks.
OUC specializes in providing vehicle service contracts, primarily to affiliated automobile dealerships owned by Berkshire Hathaway Automotive. The company exercises superior loss control as a result of its affiliation and also benefits from marketing and distribution platforms provided by these affiliates. In addition, OUC writes guaranteed auto protection (GAP) and surety business.
AM Best views OUC’s business profile as limited. The company has substantial concentration by line of business and geography. Auto warranty represents approximately 95% of OUC’s business and approximately 90% of the company’s total direct premium written in 2025 was in Kansas. Lastly, AM Best considers the company’s ERM appropriate for its risk profile.
The ratings of OUL reflect the company’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile, appropriate ERM, and implicit support from the greater organization if required.
OUL’s balance sheet strength assessment is driven by its risk-adjusted capitalization being maintained at the strongest level, as measured by BCAR, as well as its strong liquidity due to a high allocation of cash and short-term investment holdings. The company has a record of adequate operating performance, categorized by consistently profitable underwriting results and a supportive level of investment income from its investment portfolio. Additionally, the company benefits from being affiliated with Berkshire, its ultimate parent.
OUL’s positive rating factors are offset partially by a limited business profile as the company’s narrow product offering of credit life and credit accident and health products are concentrated geographically within three states. Furthermore, sales have been insignificant over the past two years relative to the more distant past as consumer and financing partner preferences have shifted away from credit life and credit accident and health products to vehicle service contracts. AM Best believes that despite these challenges, the greater organization will continue to support OUL if required as the company represents a relevant entity in Berkshire’s overall dealership strategy.
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 pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company 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.
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Patrick Cyphers
Financial Analyst
+1 908 882 1719
patrick.cyphers@ambest.com
Kevin Varvaro
Senior Financial Analyst
+1 908 882 2410
kevin.varvaro@ambest.com
Christopher Sharkey
Associate Director, Public Relations
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Al Slavin
Senior Public Relations Specialist
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al.slavin@ambest.com