Berkshire Hathaway 2000 Annual Report Download - page 69

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BERKSHIRE HATHAWAY INC.
INSURANCE GROUP
Berkshire's insurance businesses are comprised of four operating
groups of subsidiaries. GEICO, through its subsidiaries, is a multiple line
property and casualty insurer the principal business of which is writing private
passenger automobile insurance. GEICO policies are marketed mainly by
direct response methods in which customers apply for coverage directly to the
company over the telephone, through the mail or via the Internet. GEICO is
currently the sixth largest auto insurer in the U.S.
The Berkshire Hathaway Reinsurance Group provides treaty and
limited facultative reinsurance to other property/casualty insurers and
reinsurers. Berkshire is one of the world's leading providers of catastrophe
excess of loss reinsurance. In recent years, the group has generated significant
premium volume from a few very sizable retroactive reinsurance contracts.
Berkshire's unparalleled capital strength has enabled it to offer dollar coverages
of a magnitude far in excess of its competitors.
On December 21, 1998, Berkshire acquired General Re Corporation.
General Re is a holding company for global reinsurance and related risk
management operations. General Re, through its domestic subsidiaries,
General Reinsurance Corporation and National Reinsurance Corporation, is
one of the largest professional property/casualty reinsurance groups domiciled
in the United States. General Re also owns a controlling interest in Cologne
Re, a major international reinsurer.
Berkshire's fourth group of businesses underwrite miscellaneous forms
of direct insurance. National Indemnity Company and other affiliated entities
underwrite multiple lines of traditional insurance for primarily commercial
accounts. The "Homestate Group" companies underwrite various commercial
coverages for risks in an increasing number of selected states. Cypress
Insurance Company provides workers' compensation insurance to employers in
California and other states. Central States Indemnity Company issues credit
insurance distributed through credit card issuers nationwide, Kansas Bankers
Surety Company is an insurer for primarily small and medium sized banks
located in the midwest and the United States Liability Insurance Group
(acquired on August 8, 2000) is a provider of excess and surplus lines of
insurance.
Combined financial statements of the Insurance Group — unaudited
and not fully adjusted to conform to GAAP — are presented on the following
page. These combined financial statements exclude the operating results of
General Re from 1998's Statement of Earnings.