We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (21,155)
  • Industry Conferences (2)
  • Industry Job Openings (35)
  • Moore on the Market (414)
  • Negative Media (144)
  • Positive Media (73)
  • Sheryl's Articles (800)
  • Wink's Articles (353)
  • Wink's Inside Story (274)
  • Wink's Press Releases (123)
  • Blog Archives

  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • September 2008
  • May 2008
  • February 2008
  • August 2006
  • A.M. Best Affirms Ratings of Berkshire Hathaway Inc.’s Subsidiaries

    May 17, 2013 by Best's News Service

    OLDWICK, N.J. – A.M. Best Co. has affirmed the financial strength rating (FSR) of A++ (Superior) and issuer credit ratings (ICR) of “aaa” of National Indemnity Company (Omaha, NE) (National Indemnity) and its affiliates. Concurrently, A.M. Best has affirmed the ICR of “bbb-” and debt rating of “bbb-” of Finial Holdings Inc. (Delaware) as well as the FSR of A- (Excellent) and ICR of “a-” of Finial Reinsurance Company (Stamford, CT). A.M. Best also has affirmed the FSR of A++ (Superior) and ICR of “aa+” of Berkshire Hathaway Life Insurance Company of Nebraska (BHLN) and FSR of A+ (Superior) and ICR of “aa-” of First Berkshire Hathaway Life Insurance Company (FBHL) (New York, NY). These companies are all subsidiaries of Berkshire Hathaway Inc. (Berkshire) [NYSE: BRK A and BRK B]. The outlook for all ratings is stable. All companies are headquartered in Omaha, NE, unless otherwise specified. (See below for a detailed listing of the companies and ratings.)

    The affirmation for the ratings of National Indemnity reflects its consistently superior operating performance, historically strong risk-adjusted capitalization and global market profile. National Indemnity is a proven contributor to Berkshire’s overall operating strategy and ongoing success.

    National Indemnity’s management team is adept at managing the underwriting cycle and has the financial resources and acumen necessary to take advantage of unique opportunities. A.M. Best believes that this distinctive aspect provides National Indemnity with the ability to outperform the market in terms of underwriting performance and its superior market profile. National Indemnity’s operating performance is enhanced by the investment returns generated by the strategies of its chief executive officer, (CEO) Mr. Warren Buffett, whose investment expertise is heavily relied upon to bolster the total returns of the organization.

    National Indemnity’s risk-based capitalization remains at the superior level. Historically, the company has managed its aggregate risk accumulations conservatively, and as a result, its risk-based capitalization has continued to remain in the superior range even with a series of severe shock losses.

    Partially offsetting these strengths is National Indemnity’s exposure to higher levels of equity investments as compared to 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 Mr. Buffett (as CEO) to the entire Berkshire organization and the lack of transparency with regard to his successor definitely pose a risk to the organization and is a continuing concern for A.M. Best. Although A.M. Best believes there are very strong internal candidates to succeed Mr. Buffett, the lack of clarity in regards to a chosen successor adds a degree of uncertainty to the future direction of the corporation, as Mr. Buffett personally controls the capital allocation within the firm. Nevertheless, A.M. Best believes Berkshire’s corporate strategy, culture and decentralized operating structure will facilitate a successful transition in management when it occurs.

    Recently, announcements were made concerning National Indemnity’s expansion into the excess & surplus lines market. A.M Best anticipates that this expansion will be measured and controlled as all necessary financial resources of the Berkshire organization will be made available for its latest endeavor. The expanded excess & surplus lines operations are anticipated to be profitable in the near term with only a moderate effect on risk-based capitalization.

    National Indemnity’s ratings could experience negative rating actions if large catastrophic losses in combination with large investment losses decreased its risk-based capitalization below the expectations of A.M. Best or it experiences a series of operating losses over several years that exceed A.M. Best’s expectations.

    The ratings of BHLN recognize its acceptable level of risk-adjusted capitalization, premium growth and the implicit and explicit benefits of being part of the Berkshire organization. Partially offsetting these positive rating factors are BHLN’s exposure to below investment grade bonds, uncertainty surrounding longer-term mortality development of the recently assumed blocks of business and its heavy concentration in an affiliated non-insurance common stock investment.

    BHLN is well positioned at its current rating level. Key rating drivers that may lead to negative rating actions include a material deterioration in BHLN’s operating performance, lack of capital support from Berkshire or substantial deterioration in its risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR).

    The FSR of A++ (Superior) and ICRs of “aaa” have been affirmed 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

    The following debt rating has been affirmed:

    Finial Holdings, Inc.—

    – “bbb-” on $200 million 7.125% senior unsecured notes, due 2023

    The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at http://www.ambest.com/ratings/methodology. BN-NJ-05-15-2013 1525 ET #

    Originally Posted at A.M. Best on May 15, 2013 by Best's News Service.

    Categories: Industry Articles
    currency