Major Rating Factors:
Fair profitability index (4.3 on a scale of 0 to 10) with operating losses during 2020 and 2021. Average return on equity over the last five years has been poor at -0.7%. Fair overall results on stability tests (3.0) including negative cash flow from operations for 2024. The largest net exposure for one risk is excessive at 10.2% of capital. Strengths include potentially strong support from affiliation with Berkshire Hathaway Inc. History of adequate reserve strength (5.8) as reserves have been consistently at an acceptable level.
Other Rating Factors:
Strong long-term capitalization index (9.4) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. 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.
F - Negative cash flow.
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Other (100%)
Licensed in:
All states and PR
Principal Investments:
Investment grade bonds (83.6%), common stock (15.6%), non investment grade bonds (0.6%), other (0.1%)
Corporate Info
Group Affiliation
Berkshire Hathaway Inc
Investment Rating
--
Company Address
400 Atlantic Street
Stamford, CT 06901
Stamford, CT 06901
Phone Number
(203) 328-5700
NAIC Number
38962
Website
Largest Affiliates