A.M. Best Affirms Credit Ratings of Berkshire Hathaway Inc.’s Subsidiaries
The ratings reflect National Indemnity’s balance sheet strength, which
National Indemnity’s management team continues to be adept at managing the underwriting cycle and has the financial resources and acumen, which places the company in a strong position to seize unique opportunities. This distinguishing aspect and its superior market profile provide National Indemnity with the ability to outperform the market in terms of underwriting performance. Furthermore, the ratings reflect the benefits of being part of Berkshire, which includes the proven investment acumen of Mr.
Partially offsetting these strengths is National Indemnity’s exposure to higher levels of equity investments as compared with most of its peers. These higher levels of equity investments can result in volatile results; however, A.M. Best’s concern is somewhat mitigated by National Indemnity’s investment portfolio’s superior long-term performance.
The importance of
The ratings of BHLN recognize its risk-adjusted capitalization is at the strongest level, the steady flow of transaction activity and the implicit and explicit benefits of being part of the Berkshire organization. Partially offsetting these positive rating factors are BHLN’s fluctuating statutory operating trends driven by the deal flow and mortality results on certain blocks, increased exposure to interest sensitive business and its heavy concentration in affiliated non-insurance investments.
National Indemnity’s ratings could experience negative rating actions if there is a series of operating losses over several years that exceeds A.M. Best’s expectations or there is a material change in the financial strength and flexibility of the group’s ultimate parent, Berkshire.
The FSR of A++ (Superior) and the Long-Term ICRs of “aaa” have been affirmed for
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Columbia Insurance Company -
National Fire & Marine Insurance Company -
National Liability & Fire Insurance Company -
National Indemnity Company of Mid-America -
National Indemnity Company of the South -
Berkshire Hathaway Specialty Insurance Company -
Berkshire Hathaway Direct Insurance Company
The following Long-Term IR has been affirmed:
— “bbb-” on
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and
Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
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