Major Rating Factors:
Weak overall results on stability tests (0.0 on a scale of 0 to 10) including. The largest net exposure for one risk is excessive at 30.4% of capital. Strengths include potentially strong support from affiliation with Berkshire Hathaway Inc. Good overall profitability index (5.3) with operating gains in each of the last five years. Return on equity has been fair, averaging 9.2% over the past five years. Strong long-term capitalization index (10.0) 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. Excellent liquidity (7.0) with ample operational cash flow and liquid investments.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Fin guar/surety (100.0%)
Licensed in:
All states and PR
Principal Investments:
Investment grade bonds (87.8%), common stock (9.9%), other (2.2%)
Corporate Info
Group Affiliation
Berkshire Hathaway Inc
Investment Rating
--
Company Address
1314 Douglas Street
Omaha, NE 68102
Omaha, NE 68102
Phone Number
(402) 916-3000
NAIC Number
13070
Website
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