(Updates with comment from analyst in the fourth paragraph).
April 20 (Bloomberg)--Warren Buffett's Berkshire Hathaway Inc. will obtain 1.65 billion of American International Group Inc. to assume the risk of political asbestos from the refloated-out insurer.The agreement with National Indemnity of Berkshire based in Omaha, Nebraska will result in a gain before tax deferred $ 200 million this quarter, AIG said today in a statement.Buffett, who oversees the largest reinsurer, to the United States assumed the risks of XL Group Plc and CNA Financial Corp. as carriers were left to simplify or limit liabilities. "The agreements give Buffett, 80, funds to invest and the chance to make a profit if claims are less than expected by the insurers.His acute sense of the performance of investment is better that what might do AIG, said Paul Howard, Director of research at the Solstice Investment Research. "I believe that AIG likes to do so that they can move their bodies of regulation or the rating agencies and say, 'look how much responsibility we took off our books'."AIG, the stock less efficient in the standard & poor 500 Index this year, rose 41 cents, or 1.3% to $32.53 at 9: 31 pm in New York Stock Exchange composite trading. The taxpayer company simplifies its liabilities to be preparing to replace the Government with private investment capital. Berkshire advanced 1.1% to $122, 079.Buffett buys the actions and obligations and earns investment returns with the accumulated bonus or float, collected by Berkshire reinsurance units. National Indemnity agreed in July to discharge the responsibilities associated with asbestos and claims of the pollution of Chicago - based CNA in exchange for a sum of $ 2 billion.Reduction of the limit of the RiskBerkshire of responsibility on the British company Chartis agreement is $ 3.5 billion, New York-based AIG said in a regulatory filing. Office of Buffett will assume responsibility for handling claims. The transaction covers accounts of asbestos AIG said that he believes have already been reserved for the limit of liability.The deal "will help reduce the risk of adverse evolution of U.S. asbestos exposures," society British Chartis Director General Peter Hancock said in the statement. Hancock was named CEO last month after the insurer was forced to increase reserves by more than 4 billion because he underestimated the costs of political claims sold in previous years.Buffett, of Berkshire Director General and head of investments, said investors in his annual letter in February that float of the company insurance was 65.8 billion at the end of the year. Which compared with 27.9 billion in 2000 and 1.63 billion in 1990, said buffet.-With the help of Noah Buhayar in New York. Editors: Dan Kraut, Gregory Mott
To contact the reporter on this story: Andrew Frye in New York at the afrye@bloomberg.net
To contact the editor responsible for this story: Dan Kraut to dkraut2@bloomberg.net
没有评论:
发表评论