From Whitney Tilson: Maybe last year's worst-ever hurricane losses will become the norm -- or even get worse. But I'd bet a lot of money on some sort of reversion to the mean. Buffett is as well -- and Berkshire Hathaway (BRKA) is going to make a FORTUNE if he's right. From Bloomberg:
Buffett's prices are as much as 20 times higher than the rates prevalent a year ago, said Kevin Madden, an insurance broker at Aon Corp. in New York. On some policies, premiums equal half of its maximum potential payout, he said. "We will do more than anybody else if the price is right,'' Buffett, Berkshire's 75-year-old billionaire chairman and chief executive officer, said in a May 7 interview. ``We are certainly willing to lose $6 billion on a single event. I hope we don't.''