Berkshire’s $1.8B reserve release

Business Insurance shows us an analyst with a sell recommendation on Berkshire Hathaway, pointing to a $1.8 billion reserve release so far this year.

I’m not an analyst, I’m an actuary. So I can’t tell you whether this means you should buy into or sell off Warren’s empire. I will point out that the $1.8B release is pretty close to the $1.6B in CNA’s asbestos reserves that Berkshire took on earlier this year.

So the reserve releases sort of cleared the way for the CNA deal. Berkshire was able to take on the reserves without overleveraging its surplus.

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