As Hurricane Season Commences, Berkshire is There
In an article in Bloomberg yesterday, Harrahs, the casino company says it is paying 50% more for property insurance because Berkshire Hathaway is "one of its only options."
The article points out that Berkshire became the lead insurer for Harrah's when AIG and Ace, their former insurers. declined to provide sufficient coverage.
Premiums are as much as 20 times higher than the prevalent rates a year ago according to an insurance broker at Aon, the insurance broker.
Most insurers with lesser balance sheets are pulling away from the market. At a time when the market is hardening and rates are compensating for the risks undertaken, Berkshire is showing its muscle and acumen.