AM Best Confirms Credit Ratings of Berkshire Hathaway Life Insurance Company of Nebraska and First Berkshire Hathaway Life Insurance Company
OLDWICK, New Jersey, February 04, 2022–(BUSINESS WIRE)–AM Best affirmed the financial strength rating (FSR) of A++ (Superior) and the long-term issuer credit rating (Long-term ICR) of “aa+” (Superior) of Berkshire Hathaway Life Insurance Company of Nebraska (BHLN ). AM Best has also confirmed the FSR of A+ (superior) and the long-term ICR of “aa-” (superior) of First Berkshire Hathaway Life Insurance Company (New York, NY). The outlook for these credit ratings (ratings) is stable.
BHLN’s ratings reflect the strength of its balance sheet, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and adequate enterprise risk management (ERM).
First Berkshire Hathaway Life Insurance Company’s ratings reflect the strength of its balance sheet, which AM Best rates as the strongest, as well as its marginal operating performance, limited business profile and adequate ERM. BHLN and First Berkshire Hathaway Life Insurance Company receive significant financial, operational and other resource support from their parent company, National Indemnity Company.
Despite a slight decrease in capital for the end of 2020, BHLN has a very good level of risk-adjusted capitalization, as measured by Best’s capital adequacy ratio (BCAR), and benefits from a flow continuous reinsurance transactions. The favorable assessment of BHLN’s balance sheet strength is partially offset by fluctuations in statutory operating trends, driven by deal flow and mortality experience on certain blocks, as well as exposure to risk-sensitive structured settlement activities. interest rate.
First Berkshire Hathaway Life Insurance Company also experienced a slight capital decline for the end of 2020. However, the company maintained a favorable risk-adjusted capitalization, which is in the strongest category, thanks to a portfolio of highly liquid assets heavily invested in cash. and short-term investments. Fluctuating operating results and limited geographic and product diversification partially offset the favorable balance sheet strength assessment. It is noted by AM Best that both entities have a specific purpose within the larger Berkshire Hathaway organization and therefore most of these adverse factors are part of the overall strategy and are actively monitored by senior management.
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 relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Assessment Activity Web page. For more information on the use and limitations of credit rating opinions, please see Best Credit Score Guide. For more information on the proper use of Best’s credit scores, Best’s preliminary credit assessments, and AM Best’s press releases, please see Guide to Proper Use of Best’s Ratings and Reviews.
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 more than 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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