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A.M. Best Affirms Credit Ratings of Central States Indemnity Co. of Omaha and CSI Life Insurance CompanyA.M. Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) of "aa-" of Central States Indemnity Co. of Omaha (CSI (News - Alert)) (Omaha, NE). In addition, A.M. Best has affirmed the FSR of A+ (Superior) and the Long-Term ICR of "aa-" of CSI Life Insurance Company (CSI Life) (Omaha, NE). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect CSI's excellent risk-adjusted capitalization, consistently profitable performance, strong balance sheet liquidity and very conservative underwriting leverage, as well as the benefits made available through its ultimate parent, Berkshire Hathaway, Inc. (Berkshire) [NYSE: BRK A and BRK B]. CSI is a specialty insurance company that provides Medicare Supplement insurance as its primary product line. These positive rating factors are offset by CSI's elevated investment 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, as the company commenced writing direct sales of Medicare Supplement insurance in 2014. The ratings also reflect the strong risk-adjusted capitalization and the explicit support provided by its parent, CSI, as well as the benefits made available through its ultmate 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 A.M. 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 A.M. 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 A.M. Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating Action Press Releases. A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
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