Moody’s assigns Baa2 to W.R. Berkley notes

Moody's Investors Service said it affirmed the Baa2 senior debt rating of W.R. Berkley Corp. and the A2 insurance financial strength ratings of its principal operating subsidiaries – Berkley Insurance Co., Admiral Insurance Co. and Berkley Regional Insurance Co.

The agency also assigned a Baa2 rating to $350 million of 30-year senior notes being issued by W.R. Berkley.

Net proceeds are expected to be used to repay $200 million of 5.6% senior notes at maturity on May 15, 2015 and for general corporate purposes.

The outlook remains stable.

Moody's said W.R. Berkley's ratings reflect the company's strong franchise within the commercial and specialty insurance segment, its diversified revenue streams, disciplined approach to underwriting and its strong earnings and good risk-adjusted capitalization.

Somewhat offsetting these positive factors are the company's opportunistic appetite for elevated operating and financial leverage at times during the underwriting cycle. Other challenges include W.R. Berkley's exposure to long-tail casualty businesses, which have greater reserve and pricing risk, and risks associated with entering new lines of business where historical actuarial data is limited, the agency said.

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