A.M. Best Assigns Ratings to Berkshire Hathaway Direct Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has assigned a financial strength rating (FSR) of A++ (Superior) and an issuer credit rating (ICR) of “aaa” to Berkshire Hathaway Direct Insurance Company (BHDIC) (Omaha, NE). The outlook assigned to both ratings is stable.

The ratings are based on BHDIC’s 90% quota share agreement with National Indemnity Company (NICO), which has been rated “aaa” for the past 10 years. As a new company formation, A.M. Best expects BHDIC to adhere to its plans for superior risk-based capitalization and net profitability over the next five years as presented in the company’s financial projections.

BHDIC was formed from the shell of American Centennial Insurance Company, which was acquired by Berkshire Hathaway Inc. in 2008. BHDIC plans to offer several lines of business to small business customers on a direct basis through the internet. The company’s initial offerings are anticipated to be workers’ compensation and business owners’ package policies. Back office operations and investment management will be supported by affiliated Berkshire Hathaway companies. BHDIC’s risk management, including overall exposures, risk appetite and control systems, will be fully incorporated into NICO’s existing risk management program.

This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

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A.M. Best Company
Peter Dickey
Assistant Vice President
(908) 439-2200, ext. 5053
[email protected]
or
Robert DeRose
Vice President
(908) 439-2200, ext. 5453
[email protected]
or
Christopher Sharkey
Manager, Public Relations
(908) 439-2200, ext. 5159
[email protected]
or
Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
[email protected]

Source: A.M. Best Company

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