Major Rating Factors:
Good overall results on stability tests (6.3 on a scale of 0 to 10) despite excessive premium growth and weak risk adjusted capital in prior years. Other stability subfactors include potentially strong support from affiliation with Berkshire Hathaway Inc, good operational trends and excellent risk diversification. Fair reserve development (4.1) as reserves have generally been sufficient to cover claims. Fair profitability index (3.6) with operating losses during 2023.
Other Rating Factors:
Strong long-term capitalization index (10.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios) reflecting significant improvement over results in 2020. Excellent liquidity (7.0) 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 (81.5%), other (18.5%)
Licensed in:
All states
Principal Investments:
Investment grade bonds (18.5%), cash (16.0%), other (65.5%)
Corporate Info
Group Affiliation
Berkshire Hathaway Inc
Investment Rating
--
Company Address
7272 Wisconsin Avenue
Bethesda, MD 20814
Bethesda, MD 20814
Phone Number
(301) 986-3000
NAIC Number
37923
Website
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