The payout by Lloyd's of London syndicates for Hurricanes and other Catastrophe Claims due to weather in 2005 was over $100 Million.
In 2006, there have been very few if any Hurricane and other CatClaims so far. Property and Casualty Insurers anticipate record profits this year. These Insurers include some divisions of Berkshire Hathaway such as National Indemnity Company, it is reported in a news article today. This link is to the public access site for the article and this link shows the print reference: Joseph B. Treaster, "Buffett and Lloyd's In Deal," page B1, col. 6 (New York Times Nat'l Ed. Saturday, October 21, 2006).
The article is worth reading. It further reports on an interesting interview yesterday with Mr. Warren Buffett. It also reports on the background of Mr. Buffett's (Berkshire Hathaway's) agreement, apparently announced yesterday, to pay up to $7 Billion in what is described as new money toward asbestos and other claims pending against Lloyd's insurance policies. Equitas, a company formed by Lloyd's syndicates in 1996 to pay or handle asbestos claims and other claims, in turn is providing Mr Buffett's companies $9 Billion which Equitas had built up to pay those claims. At least part of the $9 Billion will be invested while claims are being paid, and Mr. Buffett also keeps whatever amount, if any, is left after all the claims have been paid. Such is reported in this very well-researched and well-written news article.
REMINDER: THE CONTENTS OF THIS BLOG DO NOT MAKE AN ATTORNEY-CLIENT RELATIONSHIP. ALWAYS CONSULT THE CASES AND LAWS OF EACH PARTICULAR JURISDICTION AND AN ATTORNEY IN AND FAMILIAR WITH THE PARTICULAR JURISDICTION AND ITS LAWS, WHENEVER YOU TRY TO ADDRESS OR RESOLVE ANY LEGAL QUESTION.
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