Berkshire Hathaway Assurance
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| Berkshire Hathaway Assurance | |
|---|---|
| Type | Private |
| Founded | 2007, Omaha, NE, USA |
| Headquarters | |
| Key people | Warren Buffett, President and CEO |
| Industry | Insurance |
| Owner | Berkshire Hathaway |
Berkshire Hathaway Assurance is an bond insurance company created by Berkshire Hathaway, Inc. in December, 2007.
[edit] 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[citation needed], 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 Buffet 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]
[edit] References
- ^ Berkshire Hathaway to buy reinsurer, start bond insurer - MarketWatch
- ^ a b David Ellis (February 12, 2008). Buffett offers to help ailing bond insurers. Fortune. Retrieved on 2008-02-12.
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