AM Best has affirmed the Financial Strength Ratings of A (Excellent) and the Long-Term Issuer Credit Ratings of 'a+' (Excellent) of
The outlook of these Credit Ratings (ratings) is stable. Both companies are headquartered in
The ratings of OUC reflect its 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 driven by its risk-adjusted capitalization being at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR), as well as its strong liquidity and low underwriting leverage. The company has a record of strong operating performance, categorized by profitable underwriting results and a supportive level of investment income from its investment portfolio. The company benefits from being affiliated with
OUC specializes in providing vehicle service contracts, primarily to affiliated automobile dealerships owned by
The ratings of OUL reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate ERM.
OUL's strongest level of risk-adjusted capitalization, as measured by BCAR, and high levels of liquidity are offset by the company's adequate operating performance, which includes modest but positive operating earnings. OUL also benefits from its affiliation with Berkshire and the same affiliated automotive dealerships as OUC.
AM Best views OUC's and OUL's business profiles as limited. Auto warranty represents over 90% of OUC's business, with substantial geographic concentration in a few states. OUL's credit life and credit accident and health products also are focused in the automotive market and geographically concentrated with more than 90% of its business in
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AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in
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