Major Rating Factors:
Fair overall results on stability tests (3.9 on a scale of 0 to 10) including fair financial strength of affiliated Berkshire-Hathaway and weak results on operational trends. The largest net exposure for one risk is acceptable at 2.2% of capital. History of adequate reserve strength (5.9) as reserves have been consistently at an acceptable level.
Other Rating Factors:
Strong long-term capitalization index (8.2) based on excellent current risk adjusted capital (severe and moderate loss scenarios). Moreover, capital levels have been consistent in recent years. Excellent profitability (8.6) with operating gains in each of the last five years. Return on equity has been good over the last five years, averaging 13.3%. Superior liquidity (10.0) 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:
Personal/comm auto (81.2%), fin guar/surety (17.7%), other (1.2%)
Licensed in:
All states except AL, KS, MD, NY, PR
Principal Investments:
Common stock (69.6%), investment grade bonds (20.9%), preferred stock (1.6%), non investment grade bonds (1.3%), other (6.5%)
Corporate Info
Group Affiliation
Berkshire-Hathaway
Investment Rating
--
Company Address
1314 Douglas Street Suite 1400
OMAHA, NE 68102
OMAHA, NE 68102
Phone Number
(402) 916-3483
NAIC Number
27812
Website
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