Insurance can be Entertaining

Berkshire Hathaway Group is considered one of the largest insurers in the United States because the holding company controls GEICO and U.S. Liability Insurance Company, other insurers, and two of the world's largest reinsurers. Berkshire is known for its founder, Warren Buffet, who is an icon for business people and managers around the world.

The annual report of Berkshire is also legendary because it is straightforward and includes quotes and insights you will not see in any other annual report. A recent post from onstartups.com summarizes some of the more interesting quotes from the recent annual report.

The annual report for 2007, especially the letter from Buffet, is entertaining and an excellent snapshot of what concerns face American insurers going forward. Buffet discusses the success of GEICO and Tony Nicely, its CEO, in growing the company. Today, GEICO has 7.2% of the market share for major auto coverage. Buffet's discussions on the backgrounds and qualifications of some of the managers of some of Berkshire's holdings are inspiring.

At another section of the Report, Buffet states that Berkshire bought a share of PetroChina in 2002. They Sold it at a gain of $4 billion in 2007 and paid $1.2 billion in taxes. Buffet points out "This sum paid all costs of the U.S. Government - defense, social security, you name it - for about four hours." Who said insurance guys can't be entertaining?