In a WSJ article I say today, it says that Buffett indicated at yesterday's Berkshire Hathaway annual meeting that he desires to purchase a commercial property-casualty insurer. If such is a case, then he should purchase the BEST in the industry, which is generally recognized to be CHUBB. Since the underwriter is a public company and sells at only a modest premium to GAAP book value, then it doesn't seem overly difficult for Buffett to negotiate a reasonable purchase price for this superb insurer. Moreover, I believe that Berkshire would provide enormous synergies to such an acquisition, including (1) improving the returns to the Chubb's investment portfolio, (2) providing reinsurance to Chubb which would permit it to significantly expand several of its highly profitable lines of business, e.g., its high-end homeowners line, (3) implement a much more efficient capital structure, and (4) take out expenses associated with being a free-standing public company. Consequently, these combination benefits argue further for the ability to negotiate a fair purchase price for the insurer by Berkshire. IMO, such a transaction would be greeted extremely favorably by the investment community and could have as favorable economics for the purchaser as its acquisition of the remainder of GEICO several years ago.