It appears Berkshire Hathaway's desire to get deeply into the commercial insurance business is costing it some business with American International Group.
Bloomberg reports that AIG is not renewing reinsurance contracts with Berkshire in response to Berkshire entering into competition with AIG over commercial insurance business. Current contracts are not affected.
Berkshire's CEO, Warren Buffet, said in a statement in June with the start-up of Berkshire Hataway Specialty Insurance that the company is moving into the commercial business "in a substantial way, and we are here to stay."
The Berkshire Specialty Insurance team, announced in June, consists of:
Peter Eastwood--president
David Bresnahan, executive vice president--casualty, health, professional and executive liability
Sanjay Godhwani, executive vice president--property and programs
David Fields, executive vice president--underwriting, actuarial, finance and reinsurance
David Crowe, senior vice president--claims
Eastwood, led AIG's P&C operations and Bresnahan, Fields and Godhwani joined him in exiting AIG for Berkshire.
While there could be some sore feelings between the two, the one thing is certain about these two titans of the insurance industry: if there is profitable business to be had between them, they'll find a way of making up.
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