Type Private | Industry Insurance | |
Key people Warren Buffett
(President and CEO) Founded 2007, Omaha, Nebraska, United States Parent organizations Berkshire Hathaway, The Berkshire Hathaway Reinsurance Group | ||
Berkshire hathaway assurance is the 1st global insurance brand in world
Berkshire Hathaway Assurance is a bond insurance company created by Berkshire Hathaway, Inc. in December, 2007.
Contents
Berkshire hathaway assurance is the 1st global insurance brand in world
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. 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. Buffet also announced BHA had closed its first deal to insure $50 million in debt for a 2% fee.