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Berkshire Hathaway Inc. Message Board

  • __zorak__ __zorak__ Jul 7, 1998 1:28 PM Flag

    GEICO Exposure from super cat insurance

    does anyone know how many super cat insurance
    policies GEICO has outstanding. these are policies GIECO
    write to otehr insurance companies, insuring the
    insurance company against large claims caused by widespread
    losses.

    with all the fires in florida, heat waves
    in other states looking to blossom into lareg scale
    fires like in florida, expectations of a very sever
    hurrican season, GIECO could be exposed to very big claims
    this years.

    Buffet, writes about super cat
    policies in his anal reporst, saying that they are a good
    source of premiums. he warns tha twhile they do not have
    claims to pay on them fvery often, when they do the
    claims are very very big.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • The Florida fire reports that I see are in the
      $300 million range. Somebody's going to have to pay.
      And the action is just beginning with Miami calling
      for a long hurricane season. Where does Gieco figure
      in all this?? Anybody out there with insurance
      experiance that can shed light??

      • 2 Replies to bobo21029
      • Let me tell you how I spent my holiday weekend -
        not like BrkRules in the Keys, but part of a 45,000
        evacuation from Palm Coast (Flagler county), Florida. We had
        several homes destroyed (could have been a lot worse),
        but the main damage here and in the fires up and down
        the coast is the destruction of timber. Unlike
        Hurricane Andrew which came onshore and took out hundreds
        of homes, damage to homes represents a small amount
        of the total damage.

        I believe (and just
        doubled checked) that BRK's cat insurance is for
        hurricane damage. I don't think that the 400,000 or so
        acres would be insured as it is mainly logging. The
        expenses have been in fighting the fires - and believe me,
        those dudes a doing a SUPERB job. The outpouring of
        help from across the country is unbelievable - last
        week I saw trucks from Wyoming, a dozen or so from N
        Carolina, several from S Florida... The problem in this
        area was that the fires literally erupted and there
        was NO ONE TO FIGHT THEM. The federal govt didn't get
        off their duff until Saturday to send in the BIG
        equipment and the personnel. Thats why we all had to leave
        (IMO) - they are here now and I see the big helicopters
        dumping water. The fire got as close as 2 miles from my
        house; however, it is only 35% contained and is nowhere
        near being under control. Thursday night the sky
        looked like a night launch at the Cape - a red glow
        filled the sky.

        Anyway, our house is fine - we
        evacuated by water and spent the weekend on the boat.
        Started reading Graham's Intelligent Investor, but
        couldn't focus my mind on much of anything.

        And
        here we moved up from S Florida to get away from the
        hurricanes!

        Does everyone have a DISASTER PLAN?? You never know
        when you'll need it.......

        Anyway, I don't
        think BRK is going to be paying out any big
        $$$.

        Thanks for listening,

      • GEICO does not underwrite reinsurance
        policies.

        It is a car insurance outfit.

        It does have
        some exposure to catastrophes through its car
        insurance policies -- if their insureds have comprehensive
        coverage and their cars are destroyed by hurricanes it
        reimburses the losses.

        I would think though that
        their exposure is small.

        Berkshire Hathaway
        underwrites supercat contracts for other insurance companies
        through its another subsidiary, National
        Indemnity.

        Warren Buffett said recently that his worst case
        estimate for a loss on an event was around 600 million
        dollars. Look at his letter to shareholders. Something
        could have changed since his letter, but I would not
        expect him to do something too imprudent.

    • right on... some people are more concerned with faggots...

    • You have something against weed?

      Greg

    • Also forget those old outdated Euro-centric
      notions of hard work, merit, and competency. That stuffs
      all passe' now.

      What the fuck are you talking
      about dude? How many "white boys" you see out in the
      field picking your veggies? I'm 100% anglo but you have
      to admit that WE are the lazy bums. Mexicans are
      some of the hardest working people you will ever
      see.

      You are confusing Africans with Mexicans

      Greg
      aka NAPART

    • You cant tell who is smart, who is dumb, and who
      is lazy just by looking at them... so I think it is
      unfair to judge people by their races.

      But, on
      the otherhand, I think it is entirely fair to
      categorize a person by what the majority of them do... Take
      the Japanese for example. 99.9% of them take of there
      shoes when entering the home. So is it unfair to
      categorize them on their shoes? Probably not.

      What
      about Mexican workers in California. I've seen honest
      Mexican subcontractors and I've seen sneaky ones too. But
      yes, the majority of them steal small tools out of my
      garage, take home fruit off my trees, and even walk out
      with an old pair of shoes! I think... here I am rich
      and carefree. And them, poor enough to be stealing
      food. What about hardworking. They are by far the
      hardest working group I have seen. Can you blame me if I
      put everything out of sight and lock everything down
      when I hire subcontractors, especially
      Mexican?

      How about blacks? Are they dumb just because they are
      black... I don't think so. What about crime? I've met a
      black mane who was more honest than I am. So, should
      you tag a black man as a criminal just because he is
      black. No way. BUT what about the majority? I believe
      the average life span of a newborn black American
      male is 21. So should I get flogged for avoiding black
      neighborhoods when driving my brand new Lexus?

      I think
      the vast majority of us are NOT racist... just
      categorists.

    • HEEEYYYY Benkea!!...... we can't violate those
      folks "civil rights" by requiring them to take tests
      down at DMV in English now can we?? I mean just what
      kind of a " racist" country would we be if we required
      people to try and assimilate?? Welcome to the browning
      of America........the beat goes on.

    • This is, of course, the biggest bunch of bullshit we will read this week.

    • As a "brown" BRK holder, I heartily agree that
      you ought to move to Europe.

      In fact, why not
      move right NOW? I suspect that the good old USA might
      even be a better place for it.

      Let's keep the
      discussion to Berkshire Hathaway, ok? In whatever
      intelligible language you choose.

      Jeers

      -
      infernal

    • You are confusing hardworking & Lazy, with
      peoples race.color or religion......

      You guys are
      way smarter than me......

      I can't tell who is
      a good or bad worker. Just by looking at that
      person...I can't tell what religion or how intelligent they
      are either by just looking at someone.

      HOW DO
      YOU DO THAT.??????????

      May the WEB be with
      you.

      T.C.

    • Congratulations on your BRK holdings and a big
      hearty congratulation on your being "brown". Are you
      also a "victim of past discrimination", maybe you've
      been "oppressed" Well my friend you have hit paydirt
      bigtime. Forget WEB and investing....you're gonna look
      back on BRK stock like chump change. Also forget those
      old outdated Euro-centric notions of hard work,
      merit, and competency. That stuffs all passe' now. The
      real action for you is down in Washington. Here's
      three surefire plums in the new racial spoils system:
      1. You are automatically a "preferred bidder" when
      the FCC auctions off licenses [can be worth up to
      25%] 2.Your business is eligible to be DBE
      [Disadvantaged business enterprise] They got $6.4 billion in
      govt. contracts in 1996. 3.Your status as a "socially
      and economically disadvantaged person" qualifys you
      under the Small Business Administration set-asides
      worth a cool $14.4 billion in 1996. OOOPS.....I almost
      forgot a little extra sweetner.....the SBA's famous CASH
      BONUS program to prime contractors who sub out to
      minority owned firms......a form of bribery that uses
      tax-payer money for the payoff!! Oh geez Elk I almost
      forgot the most important question of all ....are you
      also female? If so, your luck doubles. Well that's
      enough sarcasm out of me......but I will say one thing
      in closing ......I lived in Bibb County Ga. in the
      late 40's and I saw black men in chains when I was a
      child. I also saw a black man break his own leg with a
      sledge hammer so he could get off the work gang. It made
      his white straw boss so mad he let the man lay
      squirming on the ground with the bone poking out before he
      called for the truck to carry him off. The government
      programs of the last 30 years were to make up for those
      hard times. How they ever got so distorted is beyond
      my ken.

    • View More Messages
 
BRK-A
191,158.00-1,422.00(-0.74%)Jul 29 4:03 PMEDT

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