Warren Buffet and His Insurance Companies-Warren Buffet is one of the greatest investors in the world with many diversified businesses through his Berkshire Hathaway. As we know, Warren Buffet has a lot of knowledge from Benjamin Graham in Valuing the company. With the knowledge and experience that he had gotten, Warren has become one of the biggest investors in the world with multiplying money with his manner of investment. Totally, Berkshire Hathaway has around 873 billion US dollars of Assets in 2020 with diversified subsidiary companies and generated 43.2 billion US Dollars of Net Income. Overall, this net income of Berkshire Hathaway is one of the Biggest that the company gets besides Apple Inc, Saudi Aramco, ICBC, Softbank, and the other company.
Historically, after the takeover of Berkshire Hathaway, Warren Buffet expanded the business of the company from textile to the insurance industry. In the late 1970s, he began to buy insurance companies, namely National Indemnity Company and Government Employees Insurance Company (GEICO). Until now, Berkshire Hathaway has some companies related to insurance.
Here are some of the Berkshire investments in Insurance companies
1. Government Employees Insurance Company (GEICO)
The Government Employees Insurance Company (GEICO) was founded in San Antonio, Texas by Leo Goodwin Sr., and Lillian Goodwin in 1936. Operationally, GEICO has many insurance products such as vehicle, property, and business insurance. This company was owned by Berkshire Hathaway in 1996. In 2020, according to Berkshire Hathaway’s Annual Report, the net earning of GEIO is around 3.4 billion US dollars. Meanwhile, GEICO has assets of more than $32 billion and employs around forty-two thousand. Based on the rating, this company has A++ From A.M. Best and AA+ From Standard and Poors.
2. General Re
General Reinsurance Corporation or commonly known as GenRe 1846. In 1998, General Re Corporation was officially acquired by Berkshire Hathaway. Geographically, this company has a central office in Stamford, Connecticut, United States. Along with the development of the company’s business, this company has an operational office worldwide of more than forty offices and over 1,982 employees. According to the Financial statement, the company has recorded $15.5 billion in capital and $11.0 billion in net premiums written (NPW).
3. Berkshire Hathaway Homestate Companies
Berkshire Hathaway Homestate Insurance Company operates as an insurance company. The Company offers some products of insurance such as workers compensation, auto, property, and public entity insurance services. Berkshire Hathaway Homestate serves customers in the United States that was founded in 1970 and has a central office in Omaha, Nebraska, United States of America. In this industry, this company has A.M. Best’s highest financial strength rating of A++ (Superior). In 2020, based on Financial Information, this company has around 1,176 employees.
4. Berkshire Hathaway Specialty (BHSI)
The BHSI established in 2013, because of Warren Buffett’s initiative. Berkshire Hathaway was moving into commercial insurance in a substantial Since then, BHSI has grown steadily, fuelled by stellar financial strength. Overall, this company holds financial strength ratings of A++ from AM Best and AA+ from Standard & Poor’s. Geographically, this company has a central office in One Lincoln Street, Boston, Massachusetts with 1,051 employees.
5. Berkshire Hathaway GUARD Insurance Companies
This company was founded in Wilkes-Barre, Pennsylvania, the United States in 1982 by Susan and Judd Shoval and some of supporting investors. In 2012, the company became owned by Berkshire Hathaway through the National Indemnity Company. Along with the development of the business, this company insures over 250,000 businesses in the US with a total employee of 1,067.
6.MedPro Group Inc
MedPro Group, formerly known as Medical Protective, is an American insurance company for physicians and dentists. Historically, MedPro Group has protected the assets and had reputations of the healthcare community since 1899. in 2005, Warren Buffett purchased the company for $825 million. Until now, the company has $1.5 billion in annual premium and more than 300,000 clients and makes MedPro Group is the national leader in customized insurance, claims, and patient safety & risk solutions for physicians, surgeons, dentists, and other healthcare professionals. Operationally, this company has around 1,088 employees.
7. MLMIC Insurance Companies
MLMIC was formed in response to the medical professional liability insurance crisis around the 1970s. In 2018, MLMIC was acquired by Berkshire Hathaway. Operationally, along with the development of the company, MLMIC insures more than 13,000 physicians, 3,000 dentists, dozens of hospitals, and thousands of other healthcare professionals and facilities. In 2019, the company has assets of around $744 Million US dollars and Liabilities $88 Million US dollars but showed negative results with a net loss of around -12 Million US dollars. Operationally, this company has around three hundred employees.
8. National Indemnity Primary Group
National Indemnity Company (NICO) was founded by Arthur and Jack Ringwalt in 1940 in Omaha, Nebraska. Berkshire Hathaway Inc. bought this company in March of 1967. National Indemnity Company (NICO) is one of the leading property/casualty members of the Berkshire Hathaway group of insurance companies, boasting the highest possible financial strength rating by Standard & Poor’s (AA+ Rating) and A.M. Best (A++ Rating). Financially, this company has Total Admitted Assets of around 317 billion US Dollars with liabilities of around 129 billion US dollars.
9. United States Liability Insurance Companies
United States Liability Insurance Company operates as an insurance company that was founded in 1971. This company has a central office in Devon Park Drive Wayne, Pennsylvania, United States of America. The Company markets fire, marine, and casualty insurance. United States Liability Insurance serves clients in the United States and Canada.
10. Central States Indemnity
This Insurance company has a central office in Central States Health & Life Co. of Omaha. This company gets a rating from A.M. Best rating is “A+” (Superior). This company was founded in 1932. In 1992, Berkshire Hattaway acquired this company.
Bibliography of Warren Buffet and His Insurance Companies
Berkshire Hathaway. 2021.Annual Report 2020. Accessed via https://www.berkshirehathaway.com/reports.html on October 9, 2021
GeneralRe. 2021. Financial Information. Accessed via https://www.genre.com/aboutus/financial-info/ on October 9, 2021.
GEICO. 2021. GEICO’s Financial Strength. Accessed via https://www.geico.com/about/corporate/financial-strength/ on October 9, 2021
Berkshire Hathaway Homestate Companies. 2021. Financial Information. Accessed via https://www.bhhc.com/media/41374/bhhc-website-balance-sheet.pdf on October 9, 2020.
Berkshire Hathaway Specialty Insurance. 2021. Who we Are. Accessed via https://bhspecialty.com/who-we-are/ on October 9, 2021.
MLMIC. 2021. Annual Report 2019. Accessed via https://www.mlmic.com/about/annual-report on October 9, 2021.
National Indemnity Company. 2021. Financial Information. Accessed via https://www.nationalindemnity.com/About_FinancialInfo.aspx on October 9, 2021.
United States Liability Insurance Company (USLI). 2021. About USLI. Accessed via https://www.usli.com/about-us on October 9, 2021.
Central States Indemnity. 2021.About CSI. Accessed via https://www.csi-omaha.com/about-csi/ on October 9, 2021