The purchase agreement was struck shortly after Warren Buffett discussed the lack of investing opportunities. Berkshire Hathaway Inc. has arrived at a purchase agreement for the Alleghany Corp insurance company, only a handful of weeks after Warren Buffett had said that there weren’t any good investment opportunities. The purchase includes Alleghany insurer as well as the Transatlantic Holdings reinsurer. This acquisition of the reinsurance and insurance company will broaden Berkshire Hathaway’s portfolio in this category, which already includes the Geico auto insurer and the General Re reinsurer, in addition to…
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What you need to know about Berkshire insurance investing struggles
Warren Buffett is known for outstanding outcomes in this industry but current figures are sour. In the investing world, Berkshire insurance decisions have often been seen as the gold standard in terms of solid and reliable choices. However, the company’s operating earnings fell in Q2 2019, shocking many investors. Insurers owned by Berkshire saw a substantial plummet in underwriting income in that quarter. Berkshire insurance underwriting income fell by almost 63 percent during the second quarter. This brought it to $353 million. The firm’s reinsurance unit also drooped to a…
Read MoreTesla insurance is “not an easy business”, warns Warren Buffett
The Berkshire CEO has pointed to past failures of the industry to try to get into selling coverage. Warren Buffett, CEO of Berkshire Hathaway and investing guru to millions has knocked Elon Musk’s idea to launch Tesla insurance. Buffett is seen as an expert in the insurance industry as Berkshire Hathaway thrives within it. Musk recently announced that his electric vehicle company will launch its own Tesla insurance coverage, as reported by Live Insurance News at the end of April. This was, to a large extent, a response to what…
Read MoreWarren Buffett makes insurance news with caution in the industry
Berkshire Hathaway recently announced its earnings and stated that it is unlikely that an underwriter would be purchased. In recent insurance news, Warren Buffett of Berkshire Hathaway finally put an end to the speculations that have been made about the company for a long time, by saying that they don’t have any real intention to ever purchase a large commercial underwriter, and that the intention is to take a more organic strategy in order to grow their commercial platform. Buffett fielded some heavy questions at the annual shareholder meeting for…
Read MoreBerkshire Hathaway makes insurance news with license in Singapore
The company has now won the permit that it needs to sell nonlife coverage within the country. In insurance news that represents a first for Berkshire Hathaway in terms of opening up shop in Asia for nonlife products, Warren Buffett’s conglomerate has now won a license to sell in Singapore, representing a first step that the company is taking in a broader expansion across that region. The license in the South East Asian country was awarded to Berkshire Hathaway Specialty Insurance. The company behind this insurance news provides a range…
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