Category: Insurance

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Insurance

Encore! Coverage Focuses on Discontinued Products, Retroactive Limits and Liability Trigger Conversion

(BRK.A), (BRK.B)

General Star Management Company, a wholly-owned subsidiary of General Reinsurance Corporation, a Berkshire Hathaway company, has launched “Encore!”, a trio of specialized product liability coverages.

The three different coverages are designed to protect manufacturers, importers and distributors from product liability exposures arising out of discontinued products, mergers or acquisitions, or other past product exposures.

The coverages include:

• Discontinued Products coverage is available on both occurrence and claims-made forms, depending on individual risk characteristics. A three year policy term is standard and can be increased to five years where eligible. With premiums that are fully earned at inception and non-adjustable, the policy offers a single aggregate for the policy term. Additional insured status for the purchasing company is an option, subject to eligibility requirements. General Star provides primary limits of up to $2,000,000; excess limits are available depending on the applicant’s risk profile.

• Retroactive Limits of Liability provides protection for a merger or acquisition scenario in which the seller has no or inadequate product liability coverage. General Star provides claims-made coverage with limits of up to $1,000,000, with a one day policy term and a customized reporting period designed to meet the requirements of the merger/acquisition. Retro dates of up to five years are available, subject to eligibility.

• Liability Trigger Conversion provides “Nose” coverage under a variety of scenarios when a business converts its liability insurance from a claims-made to an occurrence form. Protection is provided on an occurrence basis, with a Liability Trigger Conversion endorsement. Nose coverage is provided on a one year term and is renewable annually. Limits of up to $2,000,000 per occurrence are available for eligible applicants. Excess coverage will be considered on a case-by-case basis.

“We are pleased to announce this branded platform of specialized product liability coverages,” said Cole Palmer, Vice President and Casualty and Professional Division Manager. “Encore!” represents a distillation of 25 years of General Star expertise with wide ranging product liability exposures, and with the changes in product lines or ownership faced by manufacturers, importers and distributors.”

Marty Hacala, President & CEO, added, “The ‘Encore!’ brand is General Star’s latest expression of its commitment to the product liability marketplace. With unsurpassed financial stability, a veteran corps of underwriting and claims professionals, and an enduring appetite for the most challenging parts of the product liability life cycle, we are pleased to bring these strengths together under the ‘Encore!’ banner.”

© 2016 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Berkshire Hathaway Specialty Insurance Insurance

Berkshire Hathaway Specialty Insurance Launches Medical Stop Loss Division

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance Company (BHSI) has established a dedicated Medical Stop Loss Division and appointed John Snyder to lead the effort.

BHSI also named David Friedly as Head of Underwriting and Glenn Funk as Actuary for Medical Stop Loss.

“We are pleased to have the talent and experience of John, David and Glenn fueling our move into medical stop loss and building out our team for this product line,” said Sanjay Godhwani, Executive Vice President, BHSI. “Their deep expertise, coupled with BHSI’s strong balance sheet, will allow buyers to make their medical stop loss choice with confidence.”

BHSI notes that John Snyder comes to the company with nearly four decades of experience specializing in employer self-funded medical plans. During the course of his career, he served as a Third Party Administrator (TPA), an employee benefits broker and a Managing General Underwriter (MGU) of stop loss business. He retired from AIG in 2013 after more than a decade as President and Chief Executive Officer of Medical Excess, LLC.

David Friedly has more than 40 years of life and health insurance experience with major commercial insurers and benefits organizations. His career has included leadership roles in operations, compliance, claims and underwriting, with a focus on medical stop loss. David holds a bachelor’s degree in Political Science from the University of Southern California.

Glenn Funk joins BHSI with more than 40 years of industry experience, most recently serving as Vice President and Actuary at AIG Benefits Solutions. Previously, Glen was Executive Vice President and Chief Actuary at Medical Excess, LLC, and served as Chief Actuary at American Health & Life Insurance Company, General Reassurance Corporation and Anthem Insurance Companies. Glenn is a Fellow of the Society of Actuaries. He holds a bachelor’s degree in Mathematics from Yale University and a master’s degree in Actuarial Science from Northeastern University.

All three executives are based in BHSI’s office in Irvine, California.

© 2016 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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GEICO Insurance

GEICO Makes Ridesharing Coverage Available to South Carolina drivers

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South Carolina drivers that have been approved to drive for Uber (UberX and UberXL), Lyft, Sidecar and other on-demand services, now can get ridesharing coverage through GEICO.

GEICO first entered the ridesharing market in February of 2015 in Virginia, and has been selling a ridesharing product in Connecticut, Georgia, Maryland, Ohio, Pennsylvania, Texas, Virginia and Washington, D.C. The company is now expanding its ridesharing offering to drivers in South Carolina

“In a short time span, ridesharing has turned into a staple of everyday life,” said Othello Powell, director of GEICO commercial lines. “Whether you have that entrepreneurial spirit or are just making a few extra dollars, GEICO’s ridesharing product delivers a complete insurance solution to drivers in South Carolina at an affordable price.”

Powell noted that ridesharing comes with a unique set of insurance needs that go well beyond a traditional auto insurance policy. He points out that most personal auto policies exclude any commercial (driver for hire) use.

In addition, GEICO points out that having two policies for one vehicle can become confusing and costly.

GEICO’s hybrid ridesharing product replaces the driver’s personal auto policy and provides coverage for personal, ridesharing and other on-demand services whether the rideshare app is on or off, and with or without passengers in the vehicle or even if you’re working for multiple services.

GEICO offers the product through GEICO Commercial at a price significantly lower than taxi and traditional commercial rates.

© 2016 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Berkshire Hathaway Specialty Insurance Insurance

Berkshire Hathaway Specialty Insurance Debuts Executive & Professional Lines in the U.S.

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance (BHSI) has expanded its Executive & Professional Lines appetite to private companies in the U.S., launching the Executive First Private Company Portfolio.

BHSI is initially targeting private companies with revenue in excess of $15 million.

The portfolio offers Directors & Officers Liability, Employment Practices Liability (EPL), Fiduciary Liability, Employed Lawyers Liability and Commercial Crime Insurance in one clearly written form, crafted expressly for the exposures of privately held businesses.

“Our Private Company Portfolio provides substantive coverage and value in a contemporary and comprehensive form, backed by BHSI’s financial strength,” said Dan Fortin, Head of Executive & Professional Lines, BHSI. “The new form is the first step in our long-term strategy of providing simple, concise management liability solutions for private companies. A similar solution, tailored for nonprofit risks, is coming soon.”

The Executive First Private Company Portfolio is available with shared or separate coverage limits of up to $50 million. Customers purchasing the EPL coverage part will benefit from BHSI’s EPL First, which provides access to an on-line repository of HR training and compliance resources and attorney-client privileged “help line” services from an employment attorney. Both services are provided by Littler Mendelson, the world’s largest employment and labor law firm.

“We look forward to expanding into the private company sector and building lasting relationships with our insureds and brokers,” said Maura Verrone, Head of Private Company and Non-Profit Organizations, Executive & Professional Lines, BHSI. “The relationships developed by our underwriting specialists will be strengthened by the knowledge, experience and accessibility of our in-house claims and legal resources. Our customers can expect a collaborative approach through the entire process from underwriting to claims handling.”

© 2016 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Berkshire Hathaway Specialty Insurance Insurance

Berkshire Hathaway Specialty Insurance Expands Australia Team, Adds New Indemnity Policies

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance Company (BHSI) has unveiled four new executive and professional lines policies in Australia. The company also named Sami Jaghbir as Senior Underwriting Manager, Executive & Professional Lines, in Brisbane, and Richard Johnson as Senior Underwriting Manager, Executive & Professional Lines, in Melbourne.

The newly launched policies are:

• Executive First Directors & Officers Liability Insurance;
• Professional First Financial Planners Professional Indemnity Insurance;
• Professional First Asset Manager Liability Insurance; and
• Professional First Civil Liability Insurance

“We are pleased to introduce the first of our primary executive and professional lines policies in Australia, while rounding out our geographic footprint with experienced underwriting professionals now in Sydney, Melbourne and Brisbane,” said Cameron McLisky, Head of Executive and Professional Lines, Australasia.

“Our executive and professional lines team looks forward to providing tailored D&O, Financial Institutions and Professional Indemnity solutions with the security of our financial strength and long term commitment to the Australian marketplace.”

Sami Jaghbir joins BHSI after five years at Vero, where he held various positions, most recently as Underwriting Manager NSW/ACT, Professional & Financial Lines. Before Vero, he was Senior Account Executive, Financial & Professional Lines, at Marsh. Earlier in his career, he held positions at Promina, Citibank and Pfizer. A member of the Australian Professional Indemnity Group, Sami holds a Bachelor of Science degree from The University of Queensland; a Diploma of Financial Services, Broking, from the Australia & New Zealand Institute of Insurance & Finance (ANZIIF); and is currently completing a Masters in Commerce, Insurance, Accounting, Commercial Law from Deakin University.

Richard Johnson joined BHSI in October after 18 months at Catlin Australia, where he was Financial Lines Manager for Melbourne. Prior to Catlin, he held a number of underwriting and portfolio management roles with AIG in London and Australia, including Commercial D&O/Crime Underwriting Manager for AIG Europe. Richard received a Bachelor of Commerce degree from the University of Otago.

© 2016 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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GEICO Insurance

GEICO Reaches Million Policy Milestone in Texas

(BRK.A), (BRK.B)

GEICO recently reached a significant milestone of 1 million auto insurance policies in force in Texas.

“One million policies in force in the state is a tremendous accomplishment not only our associates in Dallas, but for all of GEICO,” said Bob Miller, GEICO senior vice president. “This speaks to the continuous effort and commitment from our associates who work hard to maintain GEICO’s strong growth.”

The record-breaking policy was sold by GEICO sales agent Zachary Field of Dallas, on Nov. 28, 2015.

Texas is the fourth state along with Florida, New York and California to reach 1 million GEICO policyholders.

In early 2016, GEICO will move to a new location in Richardson, Texas, to accommodate its growing workforce in the region.

The company was originally founded in Texas in 1936 by Leo and Lillian Goodwin.

© 2016 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Berkshire Hathaway Specialty Insurance Insurance

Berkshire Offers Professional Liability Insurance in Canada

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Berkshire Hathaway Specialty Insurance (BHSI) has begun offering its Professional First Miscellaneous Professional Liability (MPL) Insurance in Canada.

The new MPL policy provides claims-made coverage for professionals and professional services firms facing allegations of negligent acts, errors or omissions, misstatements, misleading statements, neglect, breach of duty and unintentional breach of contract.

“Our new Professional First MPL form provides coverage that maximizes protection and results in peace of mind for Canadian professionals,” said Michael Densham, Vice President of Executive and Professional Lines, Canada, BHSI. “With our coverage and our experienced professional liability team, policyholders are assured of expert, responsive service to help them avoid claims and successfully navigate those that arise.”

The MPL policy includes the following supplemental payment coverages with no retention: coverage for pre-claim assistance, reimbursement of loss of earnings and reimbursement of expenses for policyholder attendance at litigation and disciplinary proceedings.

“Bringing to market this comprehensive MPL form with the financial strength of BHSI underscores our commitment to the professional liability market in Canada,” said Paula Lansky, Assistant Vice President, Professional Liability, Canada, BHSI.

© 2016 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Insurance National indemnity

Berkshire Sets Up New Unit to Sell Insurance Online

(BRK.A), (BRK.B)

Berkshire Hathaway has set up a new insurance company specifically to sell insurance online to medium and large companies. The company, Berkshire Hathaway Direct Insurance Company (BHDIC), will utilize staffing and resources from Berkshire’s other insurance companies.

BHDIC will initially market workers’ compensation and business owners’ package policies.

Back office operations and investment management will be supported by affiliated Berkshire Hathaway companies. BHDIC’s risk management, including overall exposures, risk appetite and control systems, will be fully incorporated into National Indemnity Company’s (NICO) existing risk management program.

BHDIC was established using the shell of the American Centennial Insurance Company, which Berkshire took over in 2008.

Stable Ratings

Ratings agency A.M. Best has given the company an A++ rating and an issuer credit rating (ICR) of “aaa”.

A.M. Best based the ratings on BHDIC’s 90% quota share agreement with NICO, which has been rated “aaa” for the past 10 years.

© 2015 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Berkshire Hathaway Reinsurance Group Charlie Munger Insurance Minority Stock Positions Stock Portfolio

Berkshire Cuts Munich Re Stake, Again

(BRK.A), (BRK.B)

Berkshire Hathaway continues to see the reinsurance business as a low return business and is pulling back from the sector in its own underwriting and in its ownership stake in other underwriters.

Berkshire has again cut its stake in Munich, Germany-based reinsurer Munich Re, this time from 9.7 percent to 4.6 percent. It previously cut its stake from 12 percent to just over 9 percent earlier in 2015.

Berkshire’s own reinsurance business has been less than stellar this year with Berkshire reporting$155 million in losses from storm damage on Australia’s east coast in the 2nd quarter of 2015.

Charlie Says

“The reinsurance business not as good as it once was and is unlikely to get better,” Charlie Munger said at the 2015 Berkshire Hathaway annual meeting. “Money has come in, not because they want to be in reinsurance, but because it’s an uncorrelated asset class. We’re in it for the long haul.”

Uncorrelated (also called non-correlated) asset classes are assets that move in the opposite direction of a particular asset class, thus helping investors reduce risk in exchange for lower upside performance.

Munger’s words were echoed by Ajit Jain, who is the head of Berkshire Hathaway Reinsurance. “What was a very lucrative business is no longer a very lucrative business going forward” Jain was quoted in The Wall Street Journal.

© 2015 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Berkshire Hathaway Specialty Insurance Insurance

Berkshire Hathaway Specialty Insurance Enters Surety Market in Asia

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance Company (BHSI) is entering the surety market in Asia, and has appointed Andrew Ho as Vice President, Head of Surety, Asia. Ho will be based out of BHSI’s Singapore office.

“Our expansion into surety is indicative of our strategy to commit where our deep expertise and top-rated financial strength will create value for our customers,” said Marc Breuil, President of Asia, BHSI. “We are pleased to have Andrew leading our newest business segment, providing quality surety underwriting and responsive local service.”

BHSI is initially focusing its surety efforts in Asia on civil contractors, general builders, engineering firms, equipment manufacturers and suppliers, and fabrication firms.

“A strong surety offering is a welcome addition to the marketplace and rounds out our broad range of coverages for construction and commercial customers in Asia,” said Marcus Portbury, Senior Vice President and Regional Head of Third Party Lines, Asia, BHSI. “We look forward to working with Andrew and our BHSI colleagues worldwide to provide local and global surety solutions, tailored to individual needs.”

Andrew joins BHSI from Standard Chartered Bank where he was Director, Trade Programmes & Credit Insurance. Prior to that, Andrew worked for more than 17 years in surety and trade credit roles at QBE, including Regional Underwriting Manager – Credit & Surety, Client Accounts

© 2015 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.