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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

AM Best Comments on Credit Ratings of Alleghany Corporation and Affiliates Following Announced Acquisition by Berkshire Hathaway Inc.

AM Best has commented that the Credit Ratings (ratings) of Alleghany Corporation (headquartered in New York, NY) (Alleghany) [NYSE: Y] and its various affiliated entities are unchanged following the announced acquisition by Berkshire Hathaway Inc. (Berkshire) [NYSE: BRK.A; BRK.B]. (Please see below for a detailed listing of Alleghany’s companies and ratings).

Berkshire and Alleghany jointly announced on March 21, 2022, that they have entered into a definitive agreement under which Berkshire will acquire all outstanding Alleghany shares for $848.02 per share in cash. The transaction, which was approved unanimously by both boards of directors, represents a total equity value of approximately $11.6 billion.

Assuming that the acquisition is completed as currently contemplated, AM Best does not expect the transaction’s execution to result in any immediate changes to Alleghany’s credit ratings. Over time, as AM Best learns more about Berkshire’s plans for supporting the acquired entities, it is possible that the ratings of Alleghany and its various affiliates could benefit from the vast financial resources and financial flexibility that Berkshire possesses.

The Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” (Superior), with stable outlooks, remain unchanged for Transatlantic Reinsurance Company and its following subsidiaries, collectively referred to as TransRe:

  • TransRe Europe S.A.
  • TransRe London Limited
  • Fair American Insurance and Reinsurance Company
  • Fair American Select Insurance Company
  • Calpe Insurance Company Limited

The FSR of A+ (Superior) and the Long-Term ICRs of “aa-” (Superior), with stable outlooks, remain unchanged for RSUI Indemnity Company and its reinsured subsidiaries, collectively referred to as RSUI Group:

  • RSUI Indemnity Company
  • Landmark American Insurance Company
  • Covington Specialty Insurance Company

The FSR of A (Excellent) and the Long-Term ICRs of “a” (Excellent), with the outlook of the FSR stable and the Long-Term ICR outlook positive, remain unchanged for Capitol Indemnity Corporation and its following subsidiaries, all of which operate under a pooling agreement and collectively are referred to as CapSpecialty Insurance Group:

  • Platte River Insurance Company
  • Capitol Specialty Insurance Corporation

The following Long-Term Issue Credit Ratings are unchanged with stable outlooks:

Alleghany Corporation

-- “a-” (Excellent) on $400 million floating rate senior unsecured notes, due 2022

-- “a-” (Excellent) on $300 million 4.9% senior unsecured notes, due 2044

Transatlantic Holdings Inc.—

-- “a-” (Excellent) on $350 million 8% senior unsecured notes, due 2039

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.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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