AM Best Affirms Credit Ratings of National Indemnity Company and Its Affiliates
March 28 2024 - 9:33AM
Business Wire
AM Best has affirmed the Financial Strength Rating (FSR)
of A++ (Superior) and the Long-Term Issuer Credit Ratings
(Long-Term ICR) of “aaa” (Exceptional) of National Indemnity
Company (Omaha, NE) and its affiliates (collectively referred to as
National Indemnity). These companies are subsidiaries of Berkshire
Hathaway Inc. (Berkshire) [NYSE: BRK A and BRK B]. The outlook of
these Credit Ratings (ratings) is stable. (See below for a detailed
listing of the companies and ratings.)
The ratings of National Indemnity reflect its balance sheet
strength, which AM Best assesses as strongest, as well as its very
strong operating performance, very favorable business profile and
appropriate enterprise risk management (ERM).
National Indemnity’s balance sheet strength benefits from its
solid risk-adjusted capitalization, which is typically maintained
at the strongest level, as measured by Best’s Capital Adequacy
Ratio (BCAR), but is subject to occasional volatility, usually due
to fluctuations in investment values. This volatility is mitigated
by ample liquidity and vast financial resources, not only at
National Indemnity’s level, but also at National Indemnity’s
ultimate parent, Berkshire. Berkshire provides substantial
financial flexibility, diversification and long-term competitive
advantages associated with its non-insurance businesses, in
addition to the benefit of Berkshire’s proven investment
acumen.
National Indemnity’s steady underwriting performance has been
augmented by substantial investment contributions during most
periods, which has led to operating results that have outperformed
AM Best’s reinsurance composite, as measured by a broad range of
profitability metrics, over a prolonged time period. National
Indemnity’s underwriting results in large part reflect the
performance of Berkshire’s other (re)insurance affiliates, as a
substantial portion of the group’s premiums are assumed via quota
share and to a lesser extent excess of loss reinsurance agreements
with affiliates.
The FSR of A++ (Superior) and the Long-Term ICRs of “aaa”
(Exceptional) have been affirmed with stable outlooks for National
Indemnity Company and its following affiliates:
- 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
This press release relates to Credit Ratings that have been
published on AM 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 AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please
view Guide to Best's Credit Ratings. For information
on the proper use of Best’s Credit Ratings, Best’s Performance
Assessments, Best’s Preliminary Credit Assessments and AM Best
press releases, please view Guide to Proper Use of Best’s
Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
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Gregory Dickerson Director +1 908 882 1737
gregory.dickerson@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Carlos Wong-Fupuy Senior Director +1 908 882
2438 carlos.wong-fupuy@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com