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Insurance

Berkshire Hathaway’s Wellfleet Insurance Co. Takes Over NGL’s Student & Special Risk Business

(BRK.A), (BRK.B)

Berkshire Hathaway’s insurance company Wellfleet has agreed to terms with National Guardian Life Insurance Company (NGL) to acquire through renewals its Student and Special Risk business.

Much of that business is processed through Commercial Travelers Life Insurance Company in Utica, New York, a wholly owned NGL subsidiary.

Wellfleet will immediately assume responsibility for administrating NGL’s special risk policies and collegiate accident and health insurance, which insures over 26,000 students on approximately 100 campuses across the United States. Wellfleet will maintain NGL’s Utica, NY office, employing more than 30 insurance professionals.

“We are pleased that we have entered into this agreement with Wellfleet, one of the nation’s leading providers of health and accident insurance products to the higher education market. This transition provides our customers the ability to renew their business with a highly respected insurer who will deliver quality service. This transaction allows NGL to focus on our other lines of business,” said Knut A. Olson, NGL’s President & CEO.

“Wellfleet’s specialization in Student and Special Risk coverage for more than 25 years, and respected reputation in the market, gives NGL’s talented employees, loyal clients, and growing member base the best possible solution for operational continuity,” Olson said.

Wellfleet President & CEO, Andrew DiGiorgio, noted Wellfleet’s longtime business relationship with NGL and Commercial Travelers, and reiterated Wellfleet’s commitment to a smooth transition for NGL’s clients and members.

“Our priorities are to honor the commitments NGL extended to its customers, and to deliver quality service and customer-centric solutions to clients, members and distribution partners,” said DiGiorgio.

Completion of the transaction is subject to various conditions, including the receipt of required regulatory approval, and is expected to close in the third quarter of 2019.

© 2019 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.

Categories
Precision Castparts

Strike Over at Berkshire Hathaway-Owned Plant

(BRK.A), (BRK.B)


The strike is over at a Berkshire Hathaway-owned metals plant in upstate New York.

More than 200 workers at Berkshire Hathaway’s Specialty Metals spent three weeks walking a picket line. At issue were the long hours workers put in at the plant, which runs 24-hours a day, seven days a week.

Workers ratified a new contract on Saturday morning and they will be back to work as of Monday.

The Special Metals plant in New Hartford, New York, produces premium quality nickel base superalloys for both static and rotating aerospace and land-based gas turbine applications.

Specialty Metals is owned by Berkshire Hathaway’s Precision Castparts Corp., which is a global conglomerate operating in more than a dozen countries that manufactures complex metal components and products, high-quality investment castings, forgings and fastener systems for power generation, aerospace, space exploration, military and other mission-critical applications.

© 2019 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 Energy

US Solar Fund Acquires Milford Solar Project That Will Supply PacifiCorp

(BRK.A), (BRK.B)

US Solar Fund plc has closed the acquisition and financing of 100% of the cash equity interests in the 128MWDC Milford Solar Project.

Construction is expected to begin immediately with full commercial operations expected before the end of 2020.

The Company first announced the acquisition on 23 July 2019, however detailed disclosure was subject to financial close.

The Project is in Beaver County, approximately six miles north of Milford, Utah. Milford is expected to be operational in late 2020 and, will sell 100% of the power and renewable energy credits generated at a fixed price for 25 years to PacifiCorp, a wholly owned subsidiary of Berkshire Hathaway Energy.

PacifiCorp has contracted to sell all the renewable attributes associated with the Project to a retail customer.

PacifiCorp is a US electric power company that primarily operates regulated utilities with a service territory across the US states of Oregon, Washington, California, Utah, Idaho and Wyoming.

USF will acquire Milford from developer Longroad Energy Partners, LLC. The Longroad team has a track record of developing and financing more than 5GW of utility-scale renewable energy projects since 2004, including over 1GW in the state of Utah.

The Project will be constructed on a fixed-time and fixed-cost basis by McCarthy Building Companies, one of the largest construction companies in the US with over 2.8GW of solar and energy storage projects designed, constructed or completed since 2013.

The Project will use First Solar Inc.’s high-performance Series 6 solar panels and First Solar Energy Services is expected to provide operations and maintenance services under a separate long-term contract.

Once operational, the Project will generate over 277,500 megawatt hours of electricity annually. This volume of electricity is equivalent to displacing approximately 235,000 tonnes of CO2 emissions, powering 31,000 homes, or removing 51,000 cars from the road, every year.

© 2019 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.

Categories
Minority Stock Positions Stock Portfolio

BYD to Sell Commercial Trucks to New York Metro Area Through Milea Truck

(BRK.A), (BRK.B)

Chinese battery and vehicle maker BYD, the leader in commercial electric truck deployments, has picked Milea Truck Sales and Leasing (Milea Truck) as BYD’s fully authorized truck dealer to support the New York metropolitan area.

Headquartered in Bronx, NY, Milea Truck is well positioned to support the New York City truck market, including the Port of New York. This major milestone signals that New York commercial trucking fleets and residents can both look forward to seeing more BYD Electric Trucks on their roads, providing clean, quiet, and economical operation.

Milea Truck will offer BYD’s full line of Electric Trucks, including all Class 6 and Class 8 Trucks, Refuse Collection Trucks, Tandem Axle Day Cabs, Yard Tractors, and the world’s first All-Electric Refrigerated Box Trucks. Sales, service, parts and technical support will be provided from Milea Truck’s multiple service facilities in New York City as well as Westchester County and Long Island.

“BYD is honored to partner with Milea to bring our state-of-the-art electric truck technology to the New York region. Milea is a true leader in the industry and recognizes that BYD electric trucks are ready to go to work today” said BYD Motors Director of Business Development, John Gerra. “By partnering with Milea, we can put our zero-emission trucks to work immediately, and help provide clean air for New Yorkers.”

“Milea Truck Sales is proud to be the preeminent leader for clean energy trucks in the tri-state area. We continue to partner with New York City Departments, not-for-profits, and local businesses to help drive the transition to clean energy trucks” said Milea Truck Sales President, Barry Milea. “We are very mindful of the fact that the Bronx and the surrounding boroughs have some of the highest asthma rates in the country. We feel we have a social responsibility to do everything in our power to help fight this by putting more low emission vehicles on the road, and BYD will be a valuable partner to help us achieve that mission.”

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares. It’s an investment that has paid off handsomely. Berkshire’s original investment of $230 million has grown in value almost ten-fold, and is now worth roughly $1.96 billion.

For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.

© 2019 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.

Categories
Mouser Electronics

Mouser Electronics’ Glenn Smith Honored as Top CEO

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Glenn Smith, President and CEO of Berkshire Hathaway’s Mouser Electronics, has been named 2019’s Top Public CEO by Fort Worth Business Press. The prestigious award was presented at a luncheon August 28 at Fort Worth’s River Crest Country Club.

Smith has been a recognized leader in the North Texas business community since 2004, when he was elevated to his position as President and Chief Executive Officer of Mouser Electronics, a global industry leader that inspires innovation by offering the widest and newest selection of semiconductors and electronic components.

While still a college student, Smith joined the company as a part-time warehouse employee in 1973 when Mouser was essentially a startup operation in San Diego, Calif. Smith rose through the ranks, working in nearly all departments in multiple management roles. Smith’s leadership and tenure has seen Mouser grow from a small distribution company to one of the world’s largest electronic component distributors, with more than 2,500 employees in 26 offices worldwide and nearly $2 billion in annual sales. Acquired in 2000 by Fort Worth-based TTI, Inc., Mouser is one of the TTI family of companies and an industry leader in the successful portfolio of Berkshire Hathaway companies.

Smith learned early on about the importance of hard work, attention to detail and giving the customer a great experience. That focus remains key to the company’s mission.

“It is a great honor to receive this award, and I thank the Fort Worth Business Press as well as all of the Mouser employees who contribute every day to give our customers a best-in-class experience,” Smith stated. “I’d also like to acknowledge our wonderful customers and suppliers. Stocking the widest selection of the newest products from our supplier partners reinforces our commitment to our customers to be a single source for all the components and tools necessary for the electronic design process. There’s a lot of teamwork involved in our business success.”

Smith has served for years as a member of the Board of Directors of the Electronic Components Industry Association (ECIA), working to protect the authorized supply chain of electronic components. In 2011, he received the Distinguished Service Award from the ECIA for leading the rapid launch of the ECIA inventory search website, www.eciaauthorized.com. Smith currently serves on the Distribution Council for ECIA.

© 2019 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.

Categories
Minority Stock Positions Stock Portfolio

BYD Key to Making IndyGo’s New Red Line Go

(BRK.A), (BRK.B)

A fleet of Chinese battery and vehicle maker BYD’s electric buses are now rolling through the streets of Indianapolis as part of IndyGo’s new Red Line transit system.

IndyGo’s Red Line began service on September 1, 2019, and feature a 31-strong fleet of BYD’s 60-foot buses that travel along bus-only lanes.

The buses have a stated battery range of 275 miles, but in 51 tests that included Indianapolis’s frigid winter weather, the buses fell short of that performance level. In response, BYD, which has an association with Momentum Dynamics, agreed to provide wireless charging platforms at either end of the route in order to boost the buses’ charge level throughout the service day.

The Red Line is the first of IndyGo’s Bus Rapid Transit systems, providing increased frequency, reliability, comfort, and convenience at a fraction of the cost of light rail.

Unlike far-spaced light rail, the permanence of BRT infrastructure all along the corridor supports increased private investment, contributing to increased economic opportunity and quality of life.

Running for 13 miles, IndyGo’s new Red Line is billed as a milestone in improved capacity, comfort and comprehensive accommodation for every rider’s experience.

The Red Line corridor is the densest corridor of both residents and employers within Marion County.

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares. It’s an investment that has paid off handsomely. Berkshire’s original investment of $230 million has grown in value almost ten-fold, and is now worth roughly $1.96 billion.

For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.

© 2019 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.

Categories
Berkadia

Berkadia Secures $93M Financing for Multi-Family Property in Metro D.C.

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has arranged a $92.7-million loan to refinance Woodbridge Station, a garden-style multifamily community in Woodbridge, Virginia.

Woodbridge is approximately 22 miles south of Washington, DC.

Located at 1400 Eisenhower Circle, the community features two-, three- and four-bedroom apartments with full-size washers and dryers in-unit. Amenities include a swimming pool with a sun deck, 11 community playgrounds, hiking and jogging trails, a tennis court, dog park, grilling areas and storage units.

Jonathan Pratt and Rossana Bouchaya of Berkadia’s Washington, DC office secured a seven-year, interest-only Fannie Mae loan with a 70% loan-to-value ratio on behalf of the borrower, Washington, DC-based developer and operator Foulger-Pratt. The deal closed July 31.

About Berkadia

Founded in 2009 as a 50/50 joint venture between Berkshire Hathaway and Leucadia National Corporation (now known as Jefferies Financial Group), Berkadia is a third-party commercial mortgage servicer, as well as an approved lender for Fannie Mae, Freddie Mac, and HUD/FHA.

The company is among the top Freddie Mac and Fannie Mae multifamily lenders.

Berkadia owes its origins to GMAC Commercial Mortgage Corporation, which was acquired in 2009 by Kohlberg Kravis Roberts & Co., Five Mile Capital Partners LLC, and Goldman Sachs Capital Partners. Christened Capmark Financial, the company had $10 billion of originations in 2008 and a servicing portfolio of more than $360 billion before running into bankruptcy in October 2009.

In a deal approved by the bankruptcy court, Capmark sold its mortgage loan and servicing to the newly formed Berkadia in a deal worth $515 million.

The deal brought Berkshire into the heart of the commercial loan serving business, and the company has one of the largest commercial real estate servicing portfolios.

© 2019 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.

Categories
Precision Castparts

Workers on Strike at Berkshire Hathaway-Owned Plant in Upstate New York

(BRK.A), (BRK.B)

More than 200 workers at Berkshire Hathaway’s Specialty Metals have gone on strike. At issue are the long hours workers are working at the plant, which runs 24-hours a day, seven days a week.

The Special Metals plant in New Hartford, New York, produces premium quality nickel base superalloys for both static and rotating aerospace and land-based gas turbine applications.

The strike began on Saturday, and there are 211 employees, along with 25 technicians, that are walking a picket line.

Ron Zegarelli, chief steward at Special Metals, explained that the company is requiring workers to work 60-hour, six day weeks.

“Our guys are fed up,” Zeigler told the Observer-Dispatch, “I told (management) it wasn’t going to work.” He noted that some employees had marital problems, including divorce, due to the demands of a job that keeps them away from home for so much of the week.

The plant is continuing to operate during the strike.

“Special Metals negotiated in good faith and made a fair and equitable offer,” David Dugan, director of communications for Special Metals. “As a result of the vote, we are executing our contingency plans, including having our salaried employees operate our equipment. Through these and other actions, such as leveraging other production facilities, we are well positioned to meet our customers’ needs as negotiations continue.”

Specialty Metals is owned by Berkshire Hathaway’s Precision Castparts Corp., which is a global conglomerate operating in more than a dozen countries that manufactures complex metal components and products, high-quality investment castings, forgings and fastener systems for power generation, aerospace, space exploration, military and other mission-critical applications.

© 2019 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.

Categories
GEICO Insurance

GEICO Marks 1st Year in New Iowa Location With Plans to Hire 80 New Associates

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GEICO’s North Liberty, Iowa, office is marking the one-year anniversary of its new headquarters by extending job offers to 80 new associates by the end of 2019.

Applications are now being accepted for Customer Service Representatives, with a starting salary of $16.50/hour, and Inbound Sales Representatives, with a $16.87 starting salary. No prior insurance experience is necessary; training is provided. Apply at geico.jobs/iowa.

GEICO opened its Iowa office in 1997, when the insurer had about 2.8 million policyholders. Today, GEICO has more than 17 million policyholders. The success of the Iowa office has contributed substantially to the company’s growth. In fact, an Iowa sales associate sold GEICO’s 17-millionth policy earlier this year. The Iowa office, which currently has about 500 associates, relocated to a new 50,000-square-foot building last September.

GEICO’s Iowa office has been named a Top Workplace for the last five years by the Des Moines Register and is one of Indeed.com’s Top 10 highest-rated workplaces for compensation and benefits.

Full-time GEICO associates are offered the Total Rewards Program with a wide range of benefits, including a comprehensive benefits package, continuing education, tuition reimbursement, on-site college courses, career growth, community engagement opportunities, as well as a friendly and supportive workplace.

© 2019 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.

Categories
Berkshire Hathaway Energy

Index AR Solutions & Berkshire Hathaway’s MidAmerican Energy Partner on Mobile App to Simplify Source-Transfer Switch Operations for Electrical Utilities

(BRK.A), (BRK.B)

Index AR Solutions has partnered with Berkshire Hathaway’s MidAmerican Energy Company on an augmented reality (AR)-enabled mobile application that helps workers complete source-transfer controller operation, troubleshooting and start-up tasks with greater safety, speed and confidence. By enabling workers to visualize important steps and decision points, the newly available Source-Transfer Controller SuperApp® ensures that procedures are completed fully and quickly – ultimately minimizing service delays to electrical customers and reducing the risk of utility infrastructure damage.

MidAmerican Energy Company is a subsidiary of Berkshire Hathaway Energy, wholly-owned by Berkshire Hathaway that serves some 770,000 electric customers and 751,000 natural gas customers in Iowa, Illinois, Nebraska and South Dakota.

The Source-Transfer Controller SuperApp® is the second application development partnership between Index and MidAmerican. The two companies are also deploying a combined augmented reality (AR) and eBook training application for MidAmerican gas apprentice students that boosts engagement, knowledge retention and worker safety.

“We’re delighted to have once again partnered with a true leader in innovation such as MidAmerican Energy, as we reimagine the utility workplace of the future,” said Dan Arczynski, CEO at Index AR Solutions. “Blending advanced visualization techniques with industry best practices and the knowledge of a utility’s most skilled workers, the Source-Transfer Controller SuperApp® helps workers perform intricate procedures as safely and as efficiently as possible, each and every time.”

Source-transfer controllers are sophisticated switching mechanisms used by MidAmerican and other electrical utilities to minimize power interruptions, enabling operators to quickly shift from one power source to another in the event of a problem. The devices are complex, with multiple decision trees that often require a 4-6 hour schedule for an engineer to initially set up or reset. In addition, missed or incorrect steps can result in equipment damage, injury or service delays.

By helping workers visualize specific setup steps, the Source-Transfer Controller SuperApp® uses AR to address a common challenge in the electric utility industry. The app presents workers with an agreed-upon set of best practices, decision trees, and safety warnings at the exact time and place they are needed within a procedure.

The app gives a qualified electrician the confidence to safely perform troubleshooting, start-up and operational tasks with minimal errors or risk, ultimately translating into fewer service interruptions to customers and fewer incidents of costly equipment damage.

The Source-Transfer Controller SuperApp® is the latest in a series of more than 40 AR and eBook product offerings from Index called SuperApps® that are tailored to address common challenges associated with an industry. Delivering the core functionality of Index’s custom-built applications, SuperApp® product development is performed in the field – in close collaboration with an initial client partner – using real-world scenarios.

The Source-Transfer Controller SuperApp® is available for purchase through Index AR Solutions, with pricing and terms based on a co-marketing agreement with MidAmerican Energy Company.

© 2019 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.