Berkshire Hathaway Inc. (NYSE:BRK:A) (NYSE:BRK.B) agreed to provide more detail to investors about claims cost at insurance units, after the U.S. Securities and Exchange Commission pressed for more information.
Berkshire Hathaway’s Letter To SEC
Warren Buffet’s Berkshire Hathaway Inc. (NYSE:BRK:A) (NYSE:BRK.B) said in its letter to the Securities and Exchange Commission that the insurance major agree to provide disclosures in future filings of the significant catastrophe losses for their insurance group as a whole. The company would also provide such disclosures for each of its underwriting units to the extent that such losses are significant.
The letter was sent by Marc Hamburg, chief financial officer of Omaha, Nebraska-based Berkshire Hathaway Inc. (NYSE:BRK:A) (NYSE:BRK.B). The letter, dated April 25, was released today.
Berkshire Hathaway Inc. (NYSE:BRK:A) (NYSE:BRK.B) also agreed to provide additional detail about the reasons why the insurance units add or reduce reserves set aside to pay claims.
Berkshire Hathaway Inc. (NYSE:BRK:A) (NYSE:BRK.B)’s undertaking came in the wake of an inquiry by the Securities and Exchange Commission into the matter in a letter dated April 2.
Warren Buffet’s Berkshire Hathaway made a series of filings that were released on the website of the Securities and Exchange Commission Thursday. The Securities and Exchange Commission periodically reviews the quarterly and annual earnings reports of companies and asks companies to improve their disclosures, wherever found necessary. The Securities and Exchange Commission inquiry of Warren Buffet’s Berkshire Hathaway followed a review of the company’s annual 10-K filing for 2012.
Considering the magnitude of catastrophe losses to Berkshire Hathaway Inc. (NYSE:BRK:A) (NYSE:BRK.B)’s underwriting results, the Securities and Exchange Commission asked the company to provide additional information on the amount it spends on disaster claims.
Berkshire Hathaway also included the additional disclosures in its first-quarter filing released in early May.
Warren Buffet’s Berkshire Hathaway Inc. (NYSE:BRK:A) (NYSE:BRK.B) has insurance units that include General Re and car insurer Geico Corp. among others.
