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Berkshire Hathaway Assurance

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Title: Berkshire Hathaway Assurance  
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Berkshire Hathaway Assurance

Berkshire Hathaway Assurance
Private
Industry Insurance
Founded 2007, Omaha, NE, USA
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

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, thus opening itself to competition from any number of investors who could easily assemble the $5 billion capital. BHA will begin in New York, then move 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 FGIC Corp.[2] Buffet also announced BHA had closed its first deal to insure $50 million in debt for a 2% fee.[2]

References

  1. ^ Berkshire Hathaway to buy reinsurer, start bond insurer - MarketWatch
  2. ^ a b
  • http://www.nytimes.com/2007/12/29/business/29buffett.html?em&ex=1199077200&en=338bf88f1e251da9&ei=5087%0A
  • http://money.cnn.com/2007/12/28/news/companies/bc.apfn.berkshirehathawa.ap/index.htm?postversion=2007122811


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