Best’s News & Research Service - May 14, 2025 03:29 PM (EDT)
AM Best Affirms Credit Ratings of Berkshire Hathaway Life Insurance Company of Nebraska and First Berkshire Hathaway Life Insurance Company
- May 14, 2025 03:29 PM (EDT)
//BestWire// - AM Best has 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) (Omaha, NE). In addition, AM Best has affirmed the FSR of A+ (Superior) and the Long-Term ICR of “aa-” (Superior) of First Berkshire Hathaway Life Insurance Company (First Berkshire Hathaway Life) (New York, NY). The outlook of these Credit Ratings (ratings) is stable.
BHLN’s ratings reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
BHLN has continued to produce favorable capital growth following a dividend distribution in 2022, which had surplus decline to $8.9 billion before growing approximately 44% over the following two years to just over $12.7 billion in 2024. A large part of the growth in 2024 was attributed to realized gains from the sale of unaffiliated equity holdings. Irrespective of the recently realized gain is the longer-term trend of investment income growth from enhanced net yield on invested assets. Furthermore, the company encountered less strain following a suspension of new business beginning in 2023, as the company waits for more favorable macro-economic conditions for structured settlement business.
The ratings of First Berkshire Hathaway Life reflect its balance sheet strength, which AM Best assesses as strongest, as well as its marginal operating performance, limited business profile and appropriate ERM.
Like BHLN, 2024 also represented First Berkshire Hathaway Life’s second full year of no new sales, which along with improved investment income, led to the company’s best net earnings result in over five years of nearly $5.6 million. Despite this result, the company still lags the industry average for return on equity due to the amount of excess capital held. AM Best notes that First Berkshire Hathaway Life’s balance sheet continues to be highly liquid, with the majority of invested assets held in cash and short-term securities. AM Best also notes that both BHLN and First Berkshire Hathaway Life receive substantial financial, operational and other resource support from their parent company, National Indemnity 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 Performance Assessments, 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.