A.M. Best Co. has affirmed the financial strength rating (FSR) of ‘A++’ (Superior) and issuer credit ratings (ICR) of “aa+” of the Berkshire Hathaway Homestate Companies and its six P/C group members. These include: Brookwood Insurance Company (Coralville, IA), Cornhusker Casualty Insurance Company (Omaha, NE), Continental Divide Insurance Company (Englewood, CO), Cypress Insurance Company (San Francisco, CA), Oak River Insurance Company and Redwood Fire and Casualty Insurance Company (both of Omaha, NE). The outlook for all ratings is stable.
“The ratings reflect the group’s strong capitalization, conservative leverage position, consistent operating profitability and the considerable financial flexibility and support of its ultimate parent, Berkshire Hathaway, Inc.,” said Best.
However, Best did indicate that “the group’s geographic concentration of risk, ongoing exposure to the California workers’ compensation market and above average exposure to equity market fluctuations,” should be considered as “modestly tempering” the ratings.
“Nevertheless,” Best concluded, “the outlook reflects the group’s demonstration of favorable operating profitability and consistently strong capitalization.”
Source: A.M. Best – www.ambest.com/ratings