AM Best Places Credit Ratings of Alleghany Corporation and Its Affiliates Under Review With Positive Implications

AM Best has placed under review with positive implications the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "aa-" (Superior) of Transatlantic Reinsurance Company (New York, NY) and its subsidiaries (collectively referred to as TransRe). In addition, AM Best has placed under review with positive implications the Long-Term ICRs and the Long-Term Issue Credit Ratings (Long-Term IRs) of "a-" (Excellent) of Alleghany Corporation (Alleghany) (NYSE:Y) and Transatlantic Holdings, Inc. Alleghany and Transatlantic Holdings, Inc. are headquartered in New York, NY. Concurrently, AM Best has placed under review with positive implications the FSR of A+ (Superior) and the Long-Term ICRs of "aa-" (Superior) of RSUI Indemnity Company and its reinsured subsidiaries, collectively referred to as RSUI Group (RSUI) (headquartered in Atlanta, GA).

At the same time, AM Best has placed under review with positive implications the FSR of A (Excellent) and the Long-Term ICR of "a" (Excellent) of Capitol Indemnity Corporation and its two subsidiaries, which operate under a pooling agreement, collectively referred to as CapSpecialty Insurance Group (CapSpecialty) (headquartered in Middleton, WI). (Please see below for a detailed listing of the companies and ratings.)

The decision to place these ratings under review with positive implications follows the Oct. 19, 2022, announcement by Berkshire Hathaway Inc. (NYSE:BRK, BRK.B))) and Alleghany Corporation (NYSE:Y) that the acquisition of Alleghany by Berkshire Hathaway has been completed. After AM Best has completed its review of Berkshire's plans for supporting the acquired entities, it is likely that the ratings of Alleghany and its various affiliates will benefit from the vast financial resources and financial flexibility that Berkshire possesses.

The FSR of A+ (Superior) and the Long-Term ICRs of "aa-" (Superior) have been placed under review with positive implications for Transatlantic Reinsurance Company and its following subsidiaries:

• 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) have been placed under review with positive implications for the following members of RSUI Group:

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

The FSR of A (Excellent) and the Long-Term ICR of "a" (Excellent) have been placed under review with positive implications for the following members of CapSpecialty Insurance Group:

• Capitol Indemnity Corporation
• Platte River Insurance Company
• Capitol Specialty Insurance Corporation

The following Long-Term IRs have been placed under review with positive implications:

Alleghany Corporation—

-- "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.

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