Warren Buffett

Ratings agency Standard & Poor’s is questioning the capital adequacy of the insurance and reinsurance companies owned by Warren Buffett’s Berkshire Hathaway, due to concerns over the financing of the acquisition of Precision Castparts Corp.

The engine of Warren Buffett’s Berkshire Hathaway business stuttered and stalled in the second quarter, as the insurance and reinsurance components which have driven a good deal of the Sage of Omaha’s success, were hit by weather and catastrophe losses.

Warren Buffett’s Berkshire Hathaway has signaled its appetite for Australian and Asian expansion with the signing of a 10 year partnership deal with Australian insurer IAG, involving an equity stake and a 20% quota share reinsurance arrangement.

Warren Buffett is none too happy that reinsurance has become what he termed a “fashionable asset class”, as the fact that investors are increasingly attracted to the space has damaged his insurance and reinsurance businesses returns.

Fosun International Limited is taking steps to increase the contribution of insurance and reinsurance to its business, bidding to buy the rest of re/insurer Ironshore as it seeks to become an insurance-oriented investment group.

According to reports the Bank of England has written to the U.S. Treasury to ask why the reinsurance business of Warren Buffett’s Berkshire Hathaway has been left off the initial list of financial institutions that are deemed systemically important, or too big to fail.

Private-owned global investment and asset management conglomerate, Fosun International Limited’s adoption of Warren Buffett’s reinsurance and investment model is proving to be a success, as the China-based organisation eyes further acquisitions.

Warren Buffett’s much-anticipated 50th anniversary letter to Berkshire Hathaway investors was published on Saturday and the ‘Sage of Omaha’ explained that insurance and reinsurance has been “the engine” that propelled the firm’s expansion.

Warren Buffett, chairman of diversified investment, insurance and reinsurance firm Berkshire Hathaway, said yesterday that his firm has pulled back from U.S. catastrophe reinsurance business as the rates are no longer attractive.

Today saw the publication of one of the most interesting shareholder letters of the year, high-profile investor Warren Buffett’s letter to shareholders in his diversified investments, insurance and reinsurance firm Berkshire Hathaway.