Buffett: Float, Not Climate Change or Catastrophes Are Berkshire’s Reinsurance “Worries”
Warren Buffett is more concerned about global interest rates and the reinsurance industry’s declining float then the possibility of a climate change induced super-catastrophes.
“If super-cats become costlier and more frequent, the likely – though far from certain – effect on Berkshire’s insurance business would be to make it larger and more profitable,” Buffett said in his annual investor letter released Saturday.
Citing that Berkshire Hathaway has operated with an underwriting profit for 13 consecutive years with a pre-tax gain for that same period totalling $26.2 billion, Buffett said much of the proper/casualty industry should not expect to see the same results in the coming decade of low rates and investment gains.
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