Major Rating Factors:
Fair overall results on stability tests (4.1 on a scale of 0 to 10) including potential drain of affiliation with Berkshire-Hathaway and weak results on operational trends. The largest net exposure for one risk is conservative at 1.7% of capital. Fair reserve development (4.3) as reserves have generally been sufficient to cover claims. In 2022, the two year reserve development was 20% deficient.
Other Rating Factors:
Good overall profitability index (6.8). Weak expense controls. Return on equity has been low, averaging 3.4% over the past five years. Strong long-term capitalization index (7.2) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Excellent liquidity (8.3) with ample operational cash flow and liquid investments.
Stability Factors:
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
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Licensed in:
All states, the District of Columbia and Puerto Rico
Principal Investments:
Common stock (66.3%), investment grade bonds (24.0%), cash (1.4%), preferred stock (0.4%), other (7.8%)
Corporate Info
Group Affiliation
Berkshire-Hathaway
Investment Rating
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Company Address
1209 ORANGE STREET
WILMINGTON, DE 19801
WILMINGTON, DE 19801
Phone Number
(203) 328-6625
NAIC Number
22039
Website
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