Weather Report: Berkshire Hathaway Taking on Billions of Dollars in Hurricane Risk (BRKA)

Yesterday's Bloomberg had an article on how in the wake of last year's costly hurricane season, Warren Buffet's Berkshire Hathaway (BRKA) company has been taking on the role of insurer, often at double the rate price or more! Below are highlights from the article:

* Harrah's Entertainment Inc., the world's biggest casino company, is paying 50 percent more for property insurance because Warren Buffett's Berkshire Hathaway Inc. is one of its only options after last year's hurricanes.

* Buffett's prices are as much as 20 times higher than the rates prevalent a year ago.

* According to Buffett, "We will do more than anybody else if the price is right.''

* "Every major account I've placed, those with half a billion dollars or more of coverage, had Berkshire involved,'' said John Bullock, head of the Mississippi office for Willis Group Holdings Ltd., the No. 3 insurance broker. "That was not the case prior to this year. They were not on any of those placements.''

* According to Bullock, BRKA's rates are "three to five times higher per dollar of coverage."

BRK.A 1-yr chart: