AM Best has affirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "aaa" (Exceptional) of National Indemnity Company (Omaha, NE) and its affiliates (collectively referred to as National Indemnity). These companies are subsidiaries of the ultimate parent, Berkshire Hathaway Inc. (Berkshire) (NYSE:BRK). The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the companies and ratings.)

The ratings reflect National Indemnity's balance sheet strength, which AM Best assesses as strongest, as well as its very strong operating performance, very favorable business profile and appropriate enterprise risk management.

National Indemnity's balance sheet strength benefits from its solid risk-adjusted capitalization, which is typically maintained at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR), but is subject to occasional volatility, usually due to fluctuations in investment values or in the immediate aftermath of large dividend payments. This volatility is mitigated by ample liquidity and vast financial resources, not only at National Indemnity's level, but also at Berkshire. Berkshire provides substantial financial flexibility, diversification and long-term competitive advantages associated with its non-insurance businesses, in addition to the benefit of its proven investment acumen. AM Best notes that National Indemnity's BCAR scores remains supportive of the group's strongest overall balance sheet strength assessment despite the payment of a $55 billion special dividend payment to Berkshire, which occurred in fourth-quarter 2024.

National Indemnity's steady underwriting performance has been augmented by substantial investment contributions during most periods, which has led to operating results that have outperformed AM Best's reinsurance composite, as measured by a broad range of profitability metrics, over a prolonged time period. National Indemnity's underwriting results in large part reflect the performance of Berkshire's other (re)insurance affiliates, as a substantial portion of the group's premiums are assumed via quota share and to a lesser extent excess of loss reinsurance agreements with affiliates.

The FSR of A++ (Superior) and the Long-Term ICRs of "aaa" (Exceptional) have been affirmed with stable outlooks for National Indemnity Company and its following affiliates:

Columbia Insurance Company
National Fire & Marine Insurance Company
National Liability & Fire Insurance Company
National Indemnity Company of Mid-America
National Indemnity Company of the South
Berkshire Hathaway Specialty Insurance Company
Berkshire Hathaway Direct Insurance 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. For more information, visit www.ambest.com.

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Gregory Dickerson

Director

+1 908 882 1737

gregory.dickerson@ambest.com

Christopher Sharkey

Associate Director, Public Relations

+1 908 882 2310

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Steven M. Chirico, CPA

Director

+1 908 882 1694

steven.chirico@ambest.com

Al Slavin

Senior Public Relations Specialist

+1 908 882 2318

al.slavin@ambest.com

AM Best Affirms Credit Ratings of National Indemnity Company and Its Affiliates