AM Best Affirms Credit Ratings of National Indemnity Company and Its Affiliates

OLDWICK, N.J.--(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” (Superior) 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.

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 management team continues to manage the underwriting cycle successfully. The group’s overall operating results have outperformed AM Best’s reinsurance composite, as measured by a broad range of profitability metrics, over a prolonged time period. National Indemnity maintains extensive financial resources and expertise that places the company in a strong position to seize unique market opportunities and occasionally absorb surplus declines, usually related to temporary unrealized investment losses. In addition, Berkshire provides substantial financial flexibility, diversification and long-term competitive advantages associated with its non-insurance businesses. Furthermore, the ratings reflect the benefits of being part of Berkshire, which includes the proven investment acumen of the organization.

Partially offsetting these strengths is National Indemnity’s exposure to higher levels of equity investments compared with other players in the market. These higher levels of equity investments can result in volatility in the group’s profitability and capitalization; however, AM Best’s concern is alleviated somewhat by the superior long-term performance of the group’s investment portfolio and its strong liquidity.

The FSR of A++ (Superior) and the Long-Term ICRs of “aaa” (Superior) 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
• 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 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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