AM Best Affirms Credit Ratings of Alleghany Corporation and Its Affiliates

AM Best has affirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “aa+” (Superior) of Transatlantic Reinsurance Company and its subsidiaries (collectively referred to as TransRe). In addition, AM Best has affirmed the Long-Term ICRs and the Long-Term Issue Credit Ratings (Long-Term IRs) of “a+” (Excellent) of Alleghany Corporation (Alleghany) and Transatlantic Holdings, Inc. The outlook of these Credit Ratings is stable. All companies are headquartered in New York, NY. (See below for a detailed listing of the companies and ratings.)

The ratings of TransRe reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, very favorable business profile, appropriate enterprise risk management, as well as implicit and explicit support provided by the ultimate parent, Berkshire Hathaway Inc.

TransRe’s balance sheet strength assessment reflects consistently supportive risk-adjusted capitalization, as well as significant internal reinsurance support provided by Berkshire Hathaway Inc., which possesses vast financial resources and financial flexibility. AM Best further notes that loss reserve development has been steadily favorable for a prolonged period of time, which speaks to TransRe’s prudent approach to establishing its initial loss picks. Underwriting performance has been consistently solid and is poised to benefit from currently favorable reinsurance market conditions in many key business lines. The group has taken steps to curtail its exposure to natural catastrophe losses in recent years, which has helped limit volatility in its underwriting performance, when the global reinsurance industry has experienced significant natural catastrophe activity.

The FSR of A++ (Superior) and the Long-Term ICRs of “aa+” (Superior) have been affirmed with a stable outlook 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 following Long-Term IRs have been affirmed with stable outlooks:

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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