Reinsurance Division

Berkshire Hathaway’s Reinsurance Division was established in late 1969 to participate in the global reinsurance market during a period of tight capacity and high rates.

📝 Strategic History

Inception (1969): Launched under the leadership of George Young.
Early Success: Rapidly became a significant profit producer, taking advantage of the favorable rate environment in the early 1970s.
Discipline: The division is known for its extreme underwriting discipline, frequently canceling contracts and allowing volume to drop when competitors engaged in "unsound" rate-cutting.
Role in Portfolio: Buffett views reinsurance as an attractive area to employ capital, but only when premiums are commensurate with the exposure to catastrophes.