Berkshire Hathaway Assurance
|Founded||December 2007Omaha, Nebraska, United Statesin|
(President and CEO)
Berkshire created this government bond insurance company in December 2007 to insure municipal and state bonds. 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, 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. 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. Buffet also announced BHA had closed its first deal to insure $50 million in debt for a 2% fee. In 2014, Moody's said its credit rating was Aa1. It also has a rating of AAA from S&P.
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