Mazor'sEdge – Page 144 – News and analysis on Berkshire Hathaway

NetJets Reaches Agreement with Pilots Union

Post author By David Mazor
Post date January 28, 2019

(BRK.A), (BRK.B)

After years of pitched battles with its unions, NetJets is finding negotiations to be less acrimonious this time around.

NetJets, the worldwide leader in private aviation, has reached an agreement with its pilot union, the NetJets Association of Shared Aircraft Pilots (NJASAP) that gives all crewmembers the opportunity to earn additional compensation while enhancing quality of life on tour.

NetJets elected to initiate mid-term bargaining to improve compensation for long-term and new hire pilots, leading to the development of a new program that expressly recognizes the exceptional efforts its pilots put forth on a daily basis.

NetJets Chairman and CEO Adam Johnson and NJASAP President Pedro Leroux signed the 2018 Tentative Agreement late yesterday afternoon, following several months of collaboration between the parties that paved the way for an ambitious six-week negotiation.

The 2,500-member pilot group ratified the measure in late December with 81-plus percent voting in favor of the package of amendments that extends the 2015 Collective Bargaining Agreement an additional three years through 2026.

Among other enhancements, the newly ratified Flight & Duty Pay Program (FDPP) introduces new compensation elements, ensuring NetJets continues to be the industry leader in pilot compensation and work rules; the FDPP benefits both the pilot group and propels the business and brand forward.

“Ratification of the 2018 Tentative Agreement represents countless hours of hard work from both the NetJets team and NJASAP as we worked toward a common goal that is mutually beneficial and built on a foundation of trust and transparency,” Johnson said. “In the spirit of true collaboration, the agreement has our pilots’ best interests in mind and maintains NetJets’s position as the industry leader in pilot relations. We believe this agreement and our relationship with our crewmembers are truly unique in our industry.”

Added Leroux, “The NJASAP Executive Board is exceedingly pleased with the outcome of this negotiation – an ambitious undertaking characterized by honesty, goodwill and a genuine commitment to continuing collaboration. It is my privilege to recognize the outstanding efforts of leaders and representatives from both NetJets and NJASAP and to express my sincere appreciation to the pilot group for its thoughtful review and ratification of this ground-breaking agreement.”

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.

Tags NetJets

Pilot Flying J

Pilot Flying J Reopens Travel Center in Missouri

Post author By David Mazor
Post date January 25, 2019

(BRK.A), (BRK.B)

Pilot Flying J reopened the Flying J Travel Center in Matthews, Missouri in mid-January, following the completion of a ground-up rebuild.

The travel center features an elevated guest experience and full amenities for area residents and the traveling public, while bringing approximately 30 local jobs and other economic benefits back to the community.

“We’re thrilled to return to serve the Matthews community and contribute to the local economy with our newly rebuilt travel center,” said Ken Parent, president of Pilot Flying J. “Our goal at Pilot Flying J is to connect people and places with comfort, care and a smile at every stop. Both Matthews residents and those traveling through the New Madrid County area will again be able to enjoy the convenience and amenities of this Flying J Travel Center.”

This Flying J Travel Center offers many amenities, including:

• 12 gasoline fueling positions, 3 RV lanes and 12 diesel lanes with high-speed pumps for quicker refueling
• PJ Fresh pizza and grab-and-go food offerings prepared on site daily, including salads, sandwiches, burgers, fruit cups and an array of hot and cold snacks
• Pilot’s Best Gourmet Coffees, including bean-to-cup selections and cold brew
• Driver’s lounge
• Public Laundry
• Western Union
• CAT Scale
• Upgraded amenities and layout
• Modern interior finishes and exterior lighting
• Everyday products for quick shopping needs

The newly built facility at 703 State Highway 80 is one of Pilot Flying J’s 22 locations in Missouri, including travel centers and dealers and it is expected to contribute $2.9 million annually in state and local tax revenues.

Berkshire Hathaway and Pilot Flying J

In October 2017, Berkshire Hathaway made a $2.76 billion investment in Pilot Travel Centers. Under the terms of the agreement, Berkshire will become the majority owner in five years.

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.

Tags Pilot Flying J

Berkshire Hathaway HomeServices

Berkshire Hathaway HomeServices Expands into Northern Italy

Post author By David Mazor
Post date January 24, 2019

(BRK.A), (BRK.B)

Berkshire Hathaway HomeServices has expanded its franchise network into Northern Italy with the signing of Maggi Group Real Estate, a respected residential and commercial real estate operator serving greater Milan and the Emilia Romagna, Liguria, Lombardy and Veneto regions.

The company will operate as Berkshire Hathaway HomeServices Maggi Properties starting late February.

Maggi Properties, with a distinguished track record dating back to 1981, will be Berkshire Hathaway HomeServices’ third global franchisee following the 2018 appointments of Rubina Real Estate of Berlin and London-based Kay & Co.

The agency plans to build its market share across Northern Italy and expand into Rome within two years.

“We are excited to enter the greater Milan market with a fine company such as Maggi Properties,” said Gino Blefari, president and CEO of Berkshire Hathaway HomeServices. “Milan has been among our top priorities as Italy’s financial hub and Europe’s third-largest economy. Maggi Properties is a regional leader that is highly regarded for its residential and commercial operations as well as its real estate advisory services for financial institutions and public authorities. As important, the agency’s core values are similar to our own focusing on trust, integrity and stability.”

Maggi Properties will remain independently owned and operated by founder and CEO Cesare Maggi, who said he’s eager to grow his brokerage as a franchisee of Berkshire Hathaway HomeServices. “We are proud to represent the Berkshire Hathaway HomeServices brand in Milan and throughout Northern Italy,” said Maggi. “We believe the brand will be embraced by local and international clients seeking real estate guidance. Also, the brand will be sought out by American clients looking for property in Milan, Lake Como and the Tuscany region.”

Marcus Benussi, agency advisor and head of foreign operations, said the franchise relationship will help Maggi Properties grow and recruit more skilled agents. “Timing is good for our brand transition, as the real estate market in greater Milan continues to strengthen and attract more buyers from abroad. The trusted Berkshire Hathaway HomeServices brand brings fresh air to our markets and new opportunities for top real estate professionals. We expect to grow our business in all areas, particularly in high-end and luxury real estate. Agents who want to grow their business should consider Berkshire Hathaway HomeServices Maggi Properties.”

Berkshire Hathaway HomeServices continues as one of America’s fastest-growing real estate brokerage networks with nearly 50,000 agents and 1,400+ offices named to the brand since its launch in September 2013. With its network membership Maggi Properties will gain access to the brand’s Global Network Platform, a powerful tool suite driving lead generation, marketing support, social media, video production/distribution and more. The brand also provides global listing syndication, relocation referrals, professional education and the exclusive Luxury Collection marketing program for high-end listings.

“Our new alliance gives us access to a network of leading American, German and English real estate agencies and an active referral system,” said Benussi. “This means our clients’ listings will be displayed before a significantly larger international audience, and our fellow Berkshire Hathaway HomeServices franchisees will have a most capable brokerage to which they may refer clients seeking properties in Northern Italy. It’s a new era for our company and we couldn’t be more excited for the future.”

Tags Berkshire Hathaway HomeServices

Berkshire Hathaway Specialty Insurance Insurance

Berkshire Hathaway Specialty Insurance Expands into Transactional Liability Insurance in UK & Europe

Post author By David Mazor
Post date January 23, 2019

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance (BHSI) is expanding its North American Transactional Liability Insurance business into the UK and Europe and has appointed Ed Martin as Head of Transactional Liability, UK and Europe.

“As the need for solutions for the risks and uncertainties in corporate transactions continues to grow, BHSI is pleased to bring to market the local expertise, financial strength, and capacity that will enable companies in the UK and throughout Europe to respond, quickly and strategically, to the exposures of mergers, acquisitions and other transactions,” said Robert Underhill, Senior Vice President, Head of Transactional Liability, BHSI. “Ed is a stellar addition to our expanding Transactional Liability team worldwide.”

“Our capabilities in the UK, throughout Europe and around the world continue to expand to help our customers respond to pressing risks,” said Chris Colahan, Head of UK and Europe, BHSI. “This latest expansion follows the well set pattern of BHSI’s growth: We grow where and when we can offer outstanding expertise and provide meaningful long-term solutions, backed by our stable capacity and financial strength.”

BHSI will provide Warranty and Indemnity, Tax, and Contingent Liability Insurance in the UK and throughout Europe. The company also provides Representations & Warranties, Contingent Liability, and Class Action Settlement Insurance in the U.S. and Canada.

Martin joins BHSI from global legacy and run-off specialist Enstar Group Limited. At Enstar, Ed was the lead in-house M&A lawyer working alongside Enstar’s dedicated M&A team. Prior to joining Enstar, Ed was Of Counsel at Norton Rose (now Norton Rose Fulbright) with their London Corporate and Regulatory Insurance team. Ed qualified as a lawyer in England and Wales in 2000.

Martin will be based in BHSI’s office in London.

Tags Berkshire Hathaway Specialty Insurance, Insurance

BNSF

BNSF Starts 2019 With Dramatic Increase in Petroleum Shipments

Post author By David Mazor
Post date January 22, 2019

(BRK.A), (BRK.B)

BNSF Railway has started 2019 with positive overall numbers as compared to 2018 due to a huge increase in petroleum shipments.

Combined intermodal and carloads numbers are up 2.82% in the aggregate.

Of particular note are much higher petroleum shipments, which as of the week ending January 12, 2019, are up a whopping 43.82% over the same period last year.

Also, showing strong numbers are metals shipments, which are up 29.90%, and shipments of stone, clay and glass are up 22.06%.

Noteworthy on the downside are coal shipments, which are -1.16% and lumber shipments are down -17.37%.

Total shipments excluding intermodal are up a robust 4.98%

2018 was a strong year for BNSF, with the combined carloads including intermodal up 4.03% over 2017, and 2019 is starting off even better.

Tags BNSF

Pilot Flying J

Pilot Flying J Opens Pilot Travel Center in Arlington, Washington

Post author By David Mazor
Post date January 18, 2019

(BRK.A), (BRK.B)

Pilot Flying J has opened new a Pilot Travel Center in Arlington, Washington.

The travel center features full amenities for area residents and the traveling public, while adding approximately 70 local jobs and other economic benefits to the community.

“We’re thrilled to serve the Arlington community and contribute to the local economy with our new travel center,” said Ken Parent, president of Pilot Flying J. “Our goal at Pilot Flying J is to connect people and places with comfort, care and a smile at every stop. Both Arlington residents and those traveling through the Snohomish County area will soon be able to enjoy the convenience and amenities of this Pilot Travel Center.”

This Pilot Travel Center offers many amenities, including:

• 12 gasoline fueling positions and seven diesel lanes with high-speed pumps for quicker refueling
• PJ Fresh pizza and grab-and-go food offerings prepared on site daily, including salads, sandwiches, burgers, fruit cups and an array of hot and cold snacks
• Pilot’s Best Gourmet Coffees, including bean-to-cup selections and cold brew
• Arby’s with a drive-thru
• Cinnabon
• Western Union
• CAT Scale
• Outdoor seating
• Everyday products for quick shopping needs

The new facility at 2430 State Route 530 NE will be Pilot Flying J’s 8th location in Washington, including travel centers, Pilot Express and dealers and it is expected to contribute $5.1 million annually in state and local tax revenues.

In October 2017, Berkshire Hathaway made a $2.76 billion investment in Pilot Travel Centers. Under the terms of the agreement, Berkshire will become the majority owner in five years.

Tags Pilot Flying J

Berkshire Hathaway Specialty Insurance Insurance

Berkshire Hathaway Specialty Insurance Adds Property Construction in UK & Ireland

Post author By David Mazor
Post date January 17, 2019

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance (BHSI) announced today that it is expanding into the Property Construction insurance market in the UK and Ireland and has appointed Simeon Seamer to lead the effort as Head of Property Construction, UK and Ireland.

“With the current uncertainty surrounding available capacity for the construction industry in London, BHSI is pleased to provide a stable, reliable solution. We enter the property construction market with substantial capacity backed by stellar financial strength, BHSI’s long-view market commitment, and the expertise of Simeon to lead our growing team,” said Chris Colahan, Head of UK and Europe, BHSI.

In addition to property construction, BHSI in the UK and Ireland now offers a wide range of insurance products for the construction industry including CAR, liability and professional indemnity coverages.

Simeon comes to BHSI after nearly two decades in the construction insurance and reinsurance industry, having led underwriting for some of the largest infrastructure projects in the U.S. and Europe. He was most recently EMEA Head of Construction & Senior Underwriter at SCOR Global P&C. Prior to that he was Senior Construction Underwriter at Zurich Global Corporate UK. He began his insurance career as a London Market broker specializing in construction.

BHSI’s construction team for the UK and Ireland also includes James Emson, VP of Casualty, who joins BHSI from QBE in Hong Kong, and Farhad Dabestani, Senior Underwriter, Professional Indemnity, who comes to BHSI from AXA XL.

Tags Berkshire Hathaway Specialty Insurance, Insurance

Berkshire Hathaway Travel Protection Insurance

Berkshire Hathaway Travel Protection Unveils Cruise Coverage

Post author By David Mazor
Post date January 16, 2019

(BRK.A), (BRK.B)

Berkshire Hathaway Travel Protection (BHTP), a leading provider of travel insurance, today announced the launch of a new product, WaveCare, which provides travel insurance specifically tailored for the needs of cruise travelers.

“WaveCare is expressly designed for the fastest growing sector of the industry, cruising,” said Dean Sivley, president of Berkshire Hathaway Travel Protection. “Our comprehensive solution provides cruisers with higher medical and evacuation coverage limits for their trip and introduces BHTP’s innovative fixed benefit in the event the cruise is disabled along the way.”

Specifically, WaveCare provides:
• Up to $750,000 in medical evacuation coverage, BHTP’s highest limit
• Up to $75,000 in emergency travel medical insurance
• A fixed benefit of $500 when the traveler is confined on board for more than five hours because the cruise ship is disabled
• Comprehensive trip cancellation, interruption, delay, missed connection, and baggage protection
• A pre-existing condition waiver when insurance is purchased within 15 days of the initial trip deposit date
• 24/7 global travel assistance

BHTP has also announced enhancements to its industry-first fixed benefit insurance product for air travelers, AirCare®. Starting at only $26 for domestic and international round-trip flights, AirCare now covers late night delays and flight diversions as well as flight cancellations, flight departure delays, tarmac delays, missed connections, lost baggage, and baggage delays. Travel insurance fixed benefits ensure faster claims payment – no receipts necessary.

BHTP, well known for its revolutionary travel insurance products and services, also provides travelers with an easy “pic-and-a-click” claims process, flight tracking and expedited payments for travel disruptions via BHTP Burst.

Tags Insurance

Acquisitions HomeServices of America

HomeServices of America Picks Up Berkshire Hathaway HomeServices Florida Realty

Post author By David Mazor
Post date January 15, 2019

(BRK.A), (BRK.B)

Berkshire Hathaway’s HomeServices of America has acquired Berkshire Hathaway HomeServices Florida Realty and its affiliate, Florida Title and Guarantee Agency.

Berkshire Hathaway HomeServices Florida Realty will continue to be led by Rei Mesa, the brokerage’s CEO and president.

The firm, based in Florida, serves 21 counties from more than 40 locations and with 1,750 salespeople.

The acquisition grows HomeServices’ presence in the Sunshine State.

It acquired EWM Realty International, based in Miami, in 2003, and Berkshire Hathaway HomeServices Florida Network Realty in 2016.

“Rei, together with his executive leadership team, managing brokers, sales support staff and sales professionals, have demonstrated a longstanding commitment to providing exceptional service to their buyers, sellers and property owners,” says Ron Peltier, chairman and CEO of HomeServices of America. “Their culture of service, integrity and community involvement closely aligns with our corporate vision and we are fully committed to their continued growth and success.”

“This is an important transaction to HomeServices and we are looking forward to welcoming Rei and his team to the HomeServices family,” Peltier says.

“We are honored and excited to be joining HomeServices,” says Mesa, who was named a 2019 Real Estate Newsmaker by RISMedia. “They are an outstanding organization with a world-class portfolio of real estate brands and an experienced leadership team. Becoming a member of the HomeServices family of companies gives us a unique opportunity to grow and better serve our customers, sales professionals, and employees.”

HomeServices of America, an affiliate of Berkshire Hathaway, is No. 2 in the nation for sales volume and transactions, according to RISMedia’s 2018 Power Broker Report, garnering more than $125.4 billion in sales volume and over 328,350 transactions in 2017.

The company was featured in the June 2018 issue of RISMedia’s Real Estate magazine, and, in May, Peltier, along with six other industry leaders, was inducted into RISMedia’s inaugural Newsmakers Hall of Fame.

Berkshire Hathaway HomeServices Florida Realty is among the top 10 brokerages in the country in the Berkshire Hathaway HomeServices network, according to the announcement.

Tags HomeServices of America

Acquisitions Duracell

Berkshire Hathaway’s Duracell a Potential Player for Eveready in India

Post author By David Mazor
Post date January 14, 2019

(BRK.A), (BRK.B)

Berkshire Hathaway’s Duracell and Energizer Holdings’ Eveready brand are competitors in the US market, but India may soon be another story. At least as to who owns the rights to market Eveready for the country.

In India, the Khaitan family, is looking to sell a majority stake in their exclusive right to manufacture and market Eveready batteries.

It’s a valuable market, as India and China make up the largest markets for non-rechargeable batteries. The markets are not only the largest, but consumer demand is pushing their annual growth to a spectacular 6-7 percent rate.

Based in Calcutta, the Khaitans also have the rights to the Energizer brand, as well.

The Khaitans control Eveready Industries India Limited, and in 2015 were reportedly selling 1.2 billion batteries annually.

The 2015 death at age 59 of Deepak Khaitan, who served as Williamson Magor Group’s non-executive vice-chairman, set in motion a division of assets between his wife Yashodhara Khaitan, son Amritanshu Khaitan and daughter Nitya Bangur.

The Khaitans are also well-known as the largest bulk tea producers in the world, through their ownership of McLeod Russel India.

Duracell’s interest in India goes back to 2015, when it hired DKSH to help with the effort. Based in Zurich, Switzerland, the company is a Market Expansion Services Group that focuses on Asia.

Berkshire Hathaway acquired Duracell when it cashed out of its minority stake in Procter & Gamble in 2016, and an expansion into India, where Duracell is not a major player, would be a for a company that already has $2 billion in annual sales.

Tags Duracell