In the July 21 edition of National Underwriter, negative net written premium figures for 2007 were shown for three companies of United States Liability Insurance Group on NU's Top 20 Insurance Groups ranking, which require clarification.

The three companies are United States Liability Insurance Company, Mount Vernon Fire Insurance Company and U.S. Underwriters Insurance Company, which are part of Berkshire-Hathaway Insurance Group--the sixth-largest group shown on page 16.

After our figures were published (based on financial information from statutory filings compiled by Highline Data), Diane Duda, senior vice president and chief actuarial officer of United States Liability Insurance Group, offered clarifying information to NU and customers of the specialty insurance group to explain the negative premium figures, which also distorted the reported combined ratios.

She noted that the 2007 financial measures for the three companies were "distorted due to the impact of transactions with affiliate National Indemnity Company, intended to facilitate the centralization of cash assets for the Berkshire Hathaway group," explaining that the transactions included a loss portfolio transfer and a quota share reinsurance agreement.

According to Ms. Duda, excluding the distorting impact of one-time entries, the statistics displayed in the article for the three members of United States Liability Insurance Group together would be 2007 net premiums written of $175.9 million and a combined ratio of 79.5.

Special Reports /

Clarification On Top 20 Groups: U.S. Liability Ins. Group

Related Stories

Recommended For You