Market Overview

A.M. Best Affirms Credit Ratings of GEICO Marine Insurance Company


A.M. Best has affirmed the Financial Strength Rating (FSR) of A+
(Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of
"aa" for GEICO Marine Insurance Company (GEICO Marine) (Chevy Chase,
MD). GEICO Marine is indirectly owned by GEICO Corporation, which is a
wholly owned subsidiary of National Indemnity Company (NICO). The
ultimate parent is Berkshire Hathaway Inc. (Berkshire) [NYSE: BRKa and
BRKb]. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect GEICO Marine's balance sheet strength, which A.M.
Best categorizes as very strong, as well as its marginal operating
performance, favorable business profile and appropriate enterprise risk

The ratings reflect GEICO Marine's supportive risk-adjusted
capitalization, historical ocean marine specialty niche expertise and
the explicit support provided by NICO, in the form of significant quota
share reinsurance coverage, and for which GEICO Marine receives rating
enhancement. The ratings also recognize the implicit commitment provided
by Berkshire.

These positive rating factors are offset partially by GEICO Marine's
high investment leverage derived from its significant allocation of
invested assets to unaffiliated equities, which could lead to
fluctuations in its risk-adjusted capitalization due to market swings or
potential stock market downturns. In addition, GEICO Marine's
underwriting performance in recent years has been negatively impacted by
rapid new business growth that has pressured the company's combined

The ratings may come under pressure if capitalization weakens or if
operating performance trends do not improve. A change in the company's
role or importance within the GEICO organization could result in a
diminution of its business profile, also creating downward rating

This press release relates to Credit Ratings 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 see A.M. Best's
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating
Action Press Releases

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