The Advantages of Being in the Insurance Business

Berkshire Hathaway writes insurance for other companies, to protect them at a time when something really big comes along. We paid off about $120 million at Hurricane Andrew. But if Hurricane Andrew happened today, we would certainly be paying off at least $600 million. So it's just part of the game. And there will be super-cats of various kinds. There will be more hurricanes than huge quakes. When that time comes, we will write a big check.