Berkshire Hathaway Assurance

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Berkshire Hathaway Assurance
Private
Industry Insurance
Founded December 2007; 10 years ago (2007-12) in Omaha, Nebraska, United States
Key people
Warren Buffett
(President and CEO)
Parent Berkshire Hathaway

Berkshire Hathaway Assurance is a bond insurance company created by Berkshire Hathaway, Inc. in December 2007.

History[edit]

Berkshire created this government bond insurance company in December, 2007 to insure municipal and state bonds. These type bonds are issued by local governments to finance public works projects such as schools, hospitals, roads, and sewer systems. Berkshire is not guaranteeing BHA[citation needed], thus opening itself to competition from any number of investors who could easily assemble the $5 billion capital. BHA began insurance operations in New York, with plans to move on to California, Puerto Rico, Texas, Illinois, and Florida.[1] On February 12, 2008, Warren Buffett announced a plan to add up to $5 billion in capital to BHA to enable it to provide reinsurance on municipal bonds currently guaranteed by Ambac, MBIA, and Financial Guaranty Insurance Company.[2] Buffet also announced BHA had closed its first deal to insure $50 million in debt for a 2% fee.[2]

References[edit]

  1. ^ Berkshire Hathaway to buy reinsurer, start bond insurer - MarketWatch
  2. ^ a b David Ellis (2008-02-12). "Buffett offers to help ailing bond insurers". Fortune. Archived from the original on 2011-06-05. Retrieved 2008-02-12.