Major Rating Factors:
Fair reserve development (3.6 on a scale of 0 to 10) as reserves have generally been sufficient to cover claims. Good profitability index (4.9) with small operating losses during 2020. Excellent expense controls. Return on equity has been low, averaging 1.7% over the past five years. Good overall results on stability tests (6.0) despite excessive premium growth. Other stability subfactors include potentially strong support from affiliation with Berkshire Hathaway Inc, good operational trends and excellent risk diversification.
Other Rating Factors:
Strong long-term capitalization index (10.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios). Moreover, capital levels have been consistent in recent years. Superior liquidity (10.0) with ample operational cash flow and liquid investments.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (100.0%)
Licensed in:
IA
Principal Investments:
Investment grade bonds (88.5%), cash (11.5%)
Corporate Info
Group Affiliation
Berkshire Hathaway Inc
Investment Rating
--
Company Address
1314 Douglas Street
Omaha, NE 68102
Omaha, NE 68102
Phone Number
(402) 393-7255
NAIC Number
11014
Website
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