Berkshire on the hunt

31 December 2007 By Richard Beales Follow @richardbeales1

The Sage of Omaha s move to start a bond insurer is just the latest example of Berkshire Hathaway s strength amid disarray elsewhere in the financial sector. This and other deals announced by Buffett over the holidays could be just a taste of things to come in 2008.

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The Wall Street Journal reported on December 28 that Berkshire Hathaway was starting a bond insurance unit, Berkshire Hathaway Assurance Corp. The insurer was reported to be close to gaining approval in New York State, and to have applied for approval in several other states including California, Texas and Florida.

The same day, ING said it would sell its NRG NV reinsurance unit to Berkshire for about E300m.

Berkshire announced its $4.5bn deal to buy 60% of Marmon Holdings on December 25.

Berkshire shares are up about 30% since the beginning of August.

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