Berkshire Hathaway profits buffeted by storms, auto claims
Profits at Warren Buffett’s Berkshire Hathaway fell 37 per cent in the second-quarter as underwriting losses combined with lower investment yields. Net income was down to $4.01 billion from $6.4 billion a year earlier while operating profit was down 10 per cent to $3.89 billion from $4.33 billion. Revenue increased 3 per cent to $51.37 billion. Storms in Australia cost the insurer $155 million while its Geico auto insurance business reported that its pre-tax underwriting gain fell by 87 per cent to $53 million on higher claims. Currency fluctuations and investment yields added to the decline in profits.
Marsh McLennan buys again
Marsh McLennan continues its acquisitions with the news that Tequester Insurance Advisors is now part of the company. Tequester is based in Florida and provides personal, commercial and employee benefits insurance. Terms of the deal were not disclosed.
Willis’ Jago becomes global chairman
Willis Re’s North America chairman has been appointed to the global chair in addition to his regional role. Paddy Jago will be succeeded as president by Willis’ North American president James Kent and global head of casualty Andrew Newman; the co-presidents will also retain their current roles.
Insurers prepare for AEC integration
Insurance firms in South East Asia are preparing for integration into the new Asean Economic Community. Some of the West’s largest insurers are key players in the market including Canada’s
Manulife and Sun Life. The trading bloc, which will allow significant freedom of trade throughout its South East Asian members, will see insurers adopt international standards. Singapore is assessed to be the most ready for the integration with the Philippines next. Myanmar ranks tenth in the Milliman Asean Liberalization Index due to its closed market and low penetration of life insurance products.
