Market Overview

AM Best Affirms Credit Ratings of Central States Indemnity Co. of Omaha and CSI Life Insurance Company


AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings of "aa-" of Central States Indemnity Co. of Omaha (CSI), and its subsidiary, CSI Life Insurance Company (CSI Life). The outlook of these Credit Ratings (ratings) is stable. Both companies are domiciled in Omaha, NE.

The ratings reflect CSI and CSI Life's balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

Additionally, CSI and CSI Life benefit from very conservative underwriting leverage, as well as the implicit support from its ultimate parent, Berkshire Hathaway Inc. (Berkshire) (NYSE:BRK). CSI is a specialty insurance company that provides Medicare Supplement insurance, credit card credit insurance and agricultural equipment coverage.

These positive rating factors are offset by CSI's elevated common stock leverage, new business strain and near-term execution risk. CSI currently writes more non-credit insurance premiums compared with its long-standing credit insurance business.

The rating affirmations of CSI Life reflect its synergies with CSI. The ratings also reflect the strong risk-adjusted capitalization and the explicit support provided by its parent, CSI, as well as the implicit support from its ultimate parent, Berkshire. Offsetting rating factors include CSI Life's limited business profile, lack of product diversification and the competitive Medicare Supplement marketplace.

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 Understanding Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global rating agency and information provider with an exclusive focus on the insurance industry. Visit for more information.

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