National Indemnity Company

National Indemnity Company (NICO) was acquired by Berkshire Hathaway in March 1967, marking Berkshire's entry into the insurance industry and its evolution into a conglomerate.

📝 The Acquisition (1967)

Buffett acquired National Indemnity and its sister company, National Fire and Marine Insurance Company, from Jack Ringwalt.

• Strategic Impact: In its first year under Berkshire, the insurance units earned more than the entire textile operation, despite the textile business having a larger capital investment.
• Philosophy: The company is famous for its "underwriting for a profit" approach, often at the expense of premium volume when prices are inadequate.

🛡️ Role in Berkshire

NICO became the cornerstone of Berkshire's insurance operations, providing a steady stream of "float"—capital that can be invested for the benefit of stockholders while waiting to pay out future claims.

🔗 Connections

• Manager: Jack Ringwalt
• Source: 1967 Letter
• Concept: Insurance Float