B
Fair American Ins & Re Co
Rating Date
October 2025
NAIC
Classification
Risk Adjusted
Capital Ratio #1
Risk Adjusted
Capital Ratio #2
Loss
Ratio
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Capital
Net
Premiums
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Major Rating Factors: Good overall profitability index (5.8 on a scale of 0 to 10) despite operating losses during 2022. Return on equity has been low, averaging 2.3% over the past five years. Good overall results on stability tests (6.6) despite. Other stability subfactors include potentially strong support from affiliation with Berkshire Hathaway Inc, good operational trends and excellent risk diversification. Strong long-term capitalization index (10.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels.
Other Rating Factors: Ample reserve history (8.1) that helps to protect the company against sharp claims increases. Superior liquidity (10.0) with ample operational cash flow and liquid investments.
Stability Factors: G - Fast asset or premium growth. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Fire (15.3%), med mal (8.0%), fin guar/surety (1.1%), personal/comm auto (0.5%), farmowners (0.3%), other (74.8%)
Licensed in: All states
Principal Investments: Investment grade bonds (98.1%), other (1.9%)
Ratios
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2-Year Reserve Development
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Net Premium Growth
Investments in Affiliates
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Corporate Info
Group Affiliation
Berkshire Hathaway Inc
Investment Rating
--
Company Address
One Liberty Plaza
New York, NY 10006
Phone Number
(212) 365-2200
NAIC Number
35157
Largest Affiliates
A
Omaha, NE - P&C
B
Chevy Chase, MD - P&C
B
Omaha, NE - P&C
B
Chevy Chase, MD - P&C