AM Best confirms credit ratings of Central States Indemnity Co. of Omaha and CSI Life Insurance Company


OLDWICK, New Jersey – (COMMERCIAL THREAD) –AM Best confirmed the financial strength rating of A + (superior) and the long-term issuer credit rating of “aa-” (superior) of Central States Indemnity Co. of Omaha (CSI) and its subsidiary, CSI Life Insurance Company (CSI Life). The outlook for credit ratings (rating) is stable. Both companies are domiciled in Omaha, NE.

The ratings reflect the strength of CSI and CSI Life’s balance sheets, which AM Best considers to be the strongest, as well as their adequate operational performance, limited business profile and proper management of business risks.

In addition, CSI and CSI Life benefit from very conservative underwriting leverage, a strong liquidity position and the implicit backing of their ultimate parent company, Berkshire Hathaway Inc. (Berkshire) [NYSE: BRK A and BRK B]. CSI is a specialist insurance company that provides credit card credit insurance and has fronting agreements with several insurers.

These positive rating factors are offset by the high leverage effect of CSI’s common shares. CSI currently writes more credit insurance premiums on a gross basis compared to its long-standing credit insurance business. The vast majority of gross written premiums are linked to long-term fronting agreements from which the company benefits while bearing little underwriting risk.

CSI Life’s rating claims reflect its synergies with CSI. Ratings also reflect the highest risk-adjusted capitalization, as measured by Best’s capital adequacy ratio (BCAR) and the explicit support provided by its parent company, CSI, as well as the implicit support from its parent company. ultimate, Berkshire. Compensating rating factors include CSI Life’s limited business profile and lack of product diversification.

This press release relates to credit ratings published on the AM Best website. For all rating information relating to the publication and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this publication, please see AM Best’s Recent Rating Activity webpage. . For more information on the use and limitations of credit rating reviews, please see Best’s Guide to Credit Ratings. For more information on the proper use of Best Credit Ratings, Best Preliminary Credit Ratings, and AM Best press releases, please see the Guide to Appropriate Use of Best Ratings and Ratings.

AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry. Based in the United States, the company operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

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