Financial Strength Rating

For existing policies issued before 1st July 2022 or renewed before 1st August 2022

Star Insurance Specialists is acting as an agent for Vero Insurance New Zealand Limited (Vero Insurance) for policies issued before 1st July 2022 or renewed before 1st August 2022. Vero Insurance is the licensed insurer for these insurance policies. Vero Insurance has been given an A+ Insurer Financial Strength Rating by Standard and Poor’s. The rating outlook is stable.

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For policies issued after 1st July 2022 or renewed after 1st August 2022

Star Insurance Specialists acts as an agent of Berkshire Hathaway Specialty Insurance Company (incorporated in Nebraska, USA) (“BHSI”) as authorised under the terms of an Underwriting Management Agreement established between the two companies. BHSI is the insurer of policies issued after 1st July 2022 or renewed after 1st August 2022. BHSI is part of the Berkshire Hathaway’s National Indemnity group of insurance companies and is authorised by the Reserve Bank of New Zealand to carry on general insurance business in New Zealand. The New Zealand Company Number of BHSI is 5737531 and its Financial Service Provider number is 445946. BHSI has been given a A++ insurer financial strength rating by A.M. Best (a full description of the A.M. Best rating scale is available below) and a AA+ insurer financial strength rating by Standard & Poor’s (a full description of the Standard & Poor’s rating scale below).

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Standard & Poors Insurer Financial Strength Rating Scale*

Rating	Category Definitions
AAA	An insurer rated 'AAA' has extremely strong financial security characteristics. 'AAA' is the highest insurer financial strength rating assigned by Standard & Poor's.
AA	An insurer rated 'AA' has very strong financial security characteristics, differing only slightly from those rated higher.
A	An insurer rated 'A' has strong financial security characteristics, but is somewhat more likely to be affected by adverse business conditions than are insurers with higher ratings.
BBB	An insurer rated 'BBB' has good financial security characteristics, but is more likely to be affected by adverse business conditions than are higher-rated insurers.
BB; CCC; and CC	An insurer rated 'BB' or lower is regarded as having vulnerable characteristics that may outweigh its strengths. 'BB' indicates the least degree of vulnerability within the range; 'CC' the highest.
BB	An insurer rated 'BB' has marginal financial security characteristics. Positive attributes exist, but adverse business conditions could lead to insufficient ability to meet financial commitments.
B	An insurer rated 'B' has weak financial security characteristics. Adverse business conditions will likely impair its ability to meet financial commitments.
CCC	An insurer rated 'CCC' has very weak financial security characteristics, and is dependent on favorable business conditions to meet financial commitments.
CC	An insurer rated 'CC' has extremely weak financial security characteristics and is likely not to meet some of its financial commitments.
SD or D	An insurer rated 'SD' (selective default) or 'D' is in default on one or more of its insurance policy obligations but is not under regulatory supervision that would involve a rating of 'R'. The 'D' rating also will be used upon the filing of a bankruptcy petition or the taking of similar action if payments on a policy obligation are at risk. A 'D' rating is assigned when Standard & Poor's believes that the default will be a general default and that the obligor will fail to pay substantially all of its obligations in full in accordance with the policy terms. An 'SD' rating is assigned when Standard & Poor's believes that the insurer has selectively defaulted on a specific class of policies but it will continue to meet its payment obligations on other classes of obligations. A selective default includes the completion of a distressed exchange offer. Claim denials due to lack of coverage or other legally permitted defences are not considered defaults.
R	An insurer rated 'R' is under regulatory supervision owing to its financial condition. During the pendency of the regulatory supervision, the regulators may have the power to favor one class of obligations over others or pay some obligations and not others. The rating does not apply to insurers subject only to nonfinancial actions such as market conduct violations.
NR	An insurer designated 'NR' is not rated, which implies no opinion about the insurer's financial security.

*Ratings from 'AA' to 'CCC' may be modified by the addition of a plus (+) or minus (-) sign to show relative standingwithin the major rating categories.

Best's Financial Strength Rating (FSR) Scale

Rating Categories	Rating Symbols	Rating Notches*	Category Definitions
Superior	A+	A++	Assigned to insurance companies that have a superior ability to meet their ongoing insurance obligations
Excellent	A	A-	Assigned to insurance companies that have an excellent ability to meet their ongoing insurance obligations
Good	B+	B++	Assigned to insurance companies that have a good ability to meet their ongoing insurance obligations
Fair	B	B-	Assigned to insurance companies that have a fair ability to meet their ongoing insurance obligations. Financial strength is vulnerable to adverse changes in underwriting and economic conditions
Marginal	C+	C++	Assigned to insurance companies that have a marginal ability to meet their ongoing insurance obligations. Financial strength is vulnerable to adverse changes in underwriting and economic conditions
Weak	C	C-	Assigned to insurance companies that have a weak ability to meet their ongoing insurance obligations. Financial strength is very vulnerable to adverse changes in underwriting and economic conditions
Poor	D	-	Assigned to insurance companies that have a poor ability to meet their ongoing insurance obligations. Financial strength is extremely vulnerable to adverse changes in underwriting and economic conditions

*Each Best's Financial Strength Rating Category from "A+" to "C" includes a Rating Notch to reflect a gradation of financial strength within the category. A Rating Notch is expressed with either a second plus "+" or a minus "-".