Major Rating Factors:
Weak overall results on stability tests (2.4 on a scale of 0 to 10) including potential drain of affiliation with Berkshire-Hathaway, excessive premium growth and weak results on operational trends. The largest net exposure for one risk is conservative at 1.4% of capital. Good overall profitability index (6.2). Good expense controls. Return on equity has been low, averaging 2.9% over the past five years.
Other Rating Factors:
Strong long-term capitalization index (9.7) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Ample reserve history (7.7) that can protect against increases in claims costs. Superior liquidity (10.0) with ample operational cash flow and liquid investments.
Stability Factors:
G - Fast asset or premium growth.
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Reinsurance (100.0%)
Licensed in:
All states except MS, PR
Principal Investments:
Investment grade bonds (49.5%), common stock (45.1%), cash (0.8%), preferred stock (0.5%), other (4.1%)
Corporate Info
Group Affiliation
Berkshire-Hathaway
Investment Rating
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Company Address
100 First Stamford Place
STAMFORD, CT 06902
STAMFORD, CT 06902
Phone Number
(203) 363-5200
NAIC Number
39136
Website
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Largest Affiliates
