AM Best has affirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of 'aaa' of
Concurrently, AM Best has affirmed the FSR of A- (Excellent) and the Long-Term ICR of 'a-' of
The ratings of National Indemnity reflect its balance sheet strength, which AM Best categorizes 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, and maintains extensive financial resources and expertise that places the company in a strong position to seize unique market opportunities. Furthermore, the ratings reflect the benefits of being part of Berkshire, which includes the proven investment acumen of its CEO,
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 company's results; however, AM Best's concern is alleviated somewhat by the superior long-term performance of the group's investment portfolio.
The importance of
National Indemnity's ratings could experience negative rating actions if there is a series of operating losses over several years that exceeds AM Best's expectations, or if there is a material change in the financial strength and flexibility of the group's ultimate parent, Berkshire.
The ratings of BHLN reflect its balance sheet strength, which AM Best categorizes as strongest, as well its adequate operating performance, limited business profile and appropriate ERM.
The balance sheet assessment recognizes BHLN's strongest level of risk-adjusted, 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, exposure to interest sensitive business and its heavy concentration in affiliated non-insurance investments.
The FSR of A++ (Superior) and the Long-Term ICRs of 'aaa' have been affirmed for
The following Long-Term IR has been affirmed:
'bbb-' on
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