AP NEWS
Click to copy
Click to copy

Buffett says Berkshire Hathaway may sell an insurance unit

February 25, 2019
FILE- In this May 7, 2018, file photo Berkshire Hathaway Chairman and CEO Warren Buffett speaks during an interview in Omaha, Neb., with Liz Claman on Fox Business Network's "Countdown to the Closing Bell." Buffett said Greg Abel and Ajit Jain, the two potential successors he named, earned roughly $18 million last year managing Berkshire Hathaway’s dozens of operating companies. Buffett appeared on CNBC Monday, Feb. 25, 2019, after releasing his annual letter to Berkshire shareholders over the weekend. He reiterated Monday that Abel and Jain have both done a great job since they joined Berkshire’s board last January. (AP Photo/Nati Harnik, File)
FILE- In this May 7, 2018, file photo Berkshire Hathaway Chairman and CEO Warren Buffett speaks during an interview in Omaha, Neb., with Liz Claman on Fox Business Network's "Countdown to the Closing Bell." Buffett said Greg Abel and Ajit Jain, the two potential successors he named, earned roughly $18 million last year managing Berkshire Hathaway’s dozens of operating companies. Buffett appeared on CNBC Monday, Feb. 25, 2019, after releasing his annual letter to Berkshire shareholders over the weekend. He reiterated Monday that Abel and Jain have both done a great job since they joined Berkshire’s board last January. (AP Photo/Nati Harnik, File)

OMAHA, Neb. (AP) — Billionaire Warren Buffett says his Berkshire Hathaway conglomerate may take the unusual step of selling one of its insurance companies.

Buffett told CNBC Monday that Berkshire has reached an agreement to sell Applied Underwriters, which sells workers’ compensation insurance. But Buffett said state regulators will have to sign off on the deal before it can go forward.

Buffett said Applied Underwriters is a smaller firm that has to compete against two larger insurance companies Berkshire owns that also sell workers’ compensation coverage.

It’s usual for Berkshire to sell or close any of its companies. Buffett says his preferred holding period for an acquisition is forever.

In the past, the only exception Buffett has made to this policy is for businesses that face the prospect of never-ending operating losses.

All contents © copyright 2019 The Associated Press. All rights reserved.