Major Rating Factors:
Fair profitability index (3.2 on a scale of 0 to 10) with operating losses during 2022. Average return on equity over the last five years has been poor at -0.1%. Good overall results on stability tests (5.8) despite. Other stability subfactors include potentially strong support from affiliation with Berkshire Hathaway Inc, good operational trends, good risk adjusted capital for prior years and excellent risk diversification. The largest net exposure for one risk is acceptable at 2.7% of capital. Strong long-term capitalization index (8.3) based on excellent current risk adjusted capital (severe and moderate loss scenarios) reflecting improvement over results in 2022.
Other Rating Factors:
History of adequate reserve strength (7.0) as reserves have been consistently at an acceptable level. Superior liquidity (10.0) with ample operational cash flow and liquid investments.
Stability Factors:
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Fin guar/surety (62.0%), product liab. (2.4%), med mal (0.6%), other (35.0%)
Licensed in:
All states
Principal Investments:
Investment grade bonds (94.9%), cash (0.1%), other (5.0%)
Corporate Info
Group Affiliation
Berkshire Hathaway Inc
Investment Rating
--
Company Address
1600 Aspen Commons
Middleton, WI 53562
Middleton, WI 53562
Phone Number
(608) 829-4200
NAIC Number
18619
Website
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