Florida, Berkshire Hathaway Strike $224 Million Deal on Insurance Fund
Southeast News • July 31, 2008
Florida will pay $224 million to Berkshire Hathaway Inc. for a guarantee that the state can borrow up to $4 billion if necessary to help cover future losses by its emergency hurricane insurance ...
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Subject: Time to get out of the insurance business in Florida...
Posted On: July 31, 2008, 10:33 am CDT
Posted By: fully fund it
Comment:
...and just lend the state money instead. Crist & Company have certainly made it more lucrative for Buffet to avoid the risk of writing Homeowners insurance and just collect money from the citizens of Florida simply for the right to lend them money. So, it looks like Florida is willing to give insurers like Buffet's companies a guaranteed rate of return but unwilling to give such a guarantee to those insurers actually willing to write insurance in the state and take the risks associated with a hurricane. Gosh, any MBA student at one of their fine state universities could figure out a better way to do this. (Note to Alex Sink: Please save us before it's too late!)
Subject: Time to get out of the insurance business in Florida...