Extremely strong competitive position through its operating companies, with a leadership position in the insurance and reinsurance sectors Extremely strong capitalization with a CAR of 195% in 2003 Very strong operating performance Debt leverage of 14% at year-end 2003 (including non-insurance operations) Exposure to severe catastrophic losses Common stocks measuring 45% of total shareholder equity at year-end 2003 National Indemnity Co. (NICO) subject to a significant amount of long-term claims payments for about $4.4 billion in asbestos and environmental reserves assumed through retroactive reinsurance covers The counterparty credit rating on Berkshire Hathaway Inc. (BRK) is based on its extremely strong capitalization and competitive position, as well as extremely strong financial flexibility. In addition, BRK has improved its operating performance in
