- Berkshire Hathaway’s bet on an inactive Florida hurricane season is set to pay off
- The company could potentially make several billion dollars from the bet
- So far, there has only been one notable storm in Florida this year
- Berkshire’s share of the insured damage from the storm is likely to be small
- Berkshire’s stock is down slightly but has performed well this year
- The peak of the hurricane season ends in mid-October
- Berkshire has been out of the Florida hurricane market in recent years
- This year, Berkshire decided to take on exposure due to favorable pricing
- Berkshire’s insurance business has a large capital base and is comfortable taking risks
- Buffett and Jain can make quick decisions on insurance policies
- Berkshire’s insurance operations are a consistent source of profits for the company
- Buffett may be looking for similar opportunities in reinsurance renewals
Berkshire Hathaway’s bet on an inactive Florida hurricane season looks like it will pay off, potentially netting the company several billion dollars. So far, there has been one notable storm to hit Florida, Hurricane Idalia, causing insured damage of $3 billion to $5 billion. Berkshire’s share of the loss is likely to be small. Berkshire’s stock is down slightly but has performed well this year. The peak of the hurricane season ends in mid-October and there are no major storms developing now. Berkshire has been out of the Florida hurricane market in recent years but decided to take on exposure this year due to favorable pricing. Berkshire’s insurance business has a large capital base and is comfortable taking risks. Buffett and Jain can make quick decisions on insurance policies. Berkshire’s insurance operations are a consistent source of profits for the company. Buffett may be looking for similar opportunities in reinsurance renewals.
