Berkshire Hathaway Assurance is a bond insurance company created by Berkshire Hathaway, Inc. in December 2007. ^{[1] [2] [3]}

History

Berkshire created this government bond insurance company in December 2007 to insure municipal and state bonds. ^{[4] [5]} These type bonds are issued by local governments to finance public works projects such as schools, hospitals, roads, and sewer systems. Berkshire is not guaranteeing BHA^{[ citation needed]}, thus opening itself to competition from any number of investors who could easily assemble the $5 billion capital. BHA began insurance operations in New York, with plans to move on to California, Puerto Rico, Texas, Illinois, and Florida. ^[6] On February 12, 2008, Warren Buffett announced a plan to add up to $5 billion in capital to BHA to enable it to provide reinsurance on municipal bonds currently guaranteed by Ambac, MBIA, and Financial Guaranty Insurance Company. ^[7] Buffet also announced BHA had closed its first deal to insure $50 million in debt for a 2% fee. ^[7] In 2014, Moody's said its credit rating was Aa1. ^{[8] [9]} It also has a rating of AAA from S&P. ^[10]

References

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