Major Rating Factors:
Good overall profitability index (5.7 on a scale of 0 to 10) despite operating losses during 2020. Return on equity has been low, averaging 2.5% over the past five years. Good overall results on stability tests (6.0) despite. Other stability subfactors include potentially strong support from affiliation with Berkshire Hathaway Inc, good operational trends and excellent risk diversification. The largest net exposure for one risk is conservative at 1.9% of capital. Strong long-term capitalization index (8.7) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels.
Other Rating Factors:
History of adequate reserve strength (6.9) 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 (5.4%), personal/comm auto (4.3%), comm multi (3.7%), work comp (2.5%), med mal (2.5%), fire (2.3%), other (79.4%)
Licensed in:
All states
Principal Investments:
Investment grade bonds (61.8%), common stock (24.6%), cash (5.5%), other (8.1%)
Corporate Info
Group Affiliation
Berkshire Hathaway Inc
Investment Rating
--
Company Address
100 Federal Street
Boston, MA 02110
Boston, MA 02110
Phone Number
(617) 936-2900
NAIC Number
22276
Website
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