Central States Indemnity

Summary

An Omaha-based insurance company that makes monthly payments for credit-card holders who become disabled or unemployed, acquired by Berkshire Hathaway in 1992.

Timeline & Role

• 1992: Berkshire purchases 82% of the company in a transaction Buffett describes as the "prototype" of what they look for in acquisitions. Managed by Buffett's friend of 35 years, Bill Kizer, the company generates about $10M in profits on $90M of annual premiums. The Kizer family retained 18% ownership to continue running the business. 1992 Letter