A.M. Best Affirms Ratings of Berkshire Hathaway Homestate Companies and Its Members.

OLDWICK, N.J. -- 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 property/casualty group members. The members of the group 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. [NYSE: BRK.A and BRK.B] (Nebraska).

These positive rating factors are modestly tempered by the group's geographic concentration of risk, ongoing exposure to the California workers' compensation market and above average exposure to equity market fluctuations. Nevertheless, the outlook reflects the group's demonstration of favorable operating profitability and consistently strong capitalization.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.