A significant leadership shift has occurred at Berkshire Hathaway Inc. — one that may foreshadow future developments.
The Wall Street Journal reported this week that Ajit Jain — already heavily tipped to be Warren Buffett’s successor — has received a higher profile in the conglomerate. He now effectively is in charge of all reinsurance operations.
The added responsibilities concurred with the announcement that Tad Montross, CEO of Berkshire’s General Re, will retire at the end of 2016. His yet-unnamed successor will report to Jain; Montross, on the other hand, has reported to Buffett.
This is a notable change. Gen Re sells protection to insurance companies, and Buffett traditionally has run the businesses separately, without overlapping managements. But the reinsurance businesses account for most of Berkshire’s accumulated float, and as The Wall Street Journal article emphasizes — and I have addressed extensively in past posts — float is critically important to the Berkshire business model. This restructuring now aligns that priority under Jain.
It will be interesting to see if 2016 brings further announcements from Berkshire of change at the top.
Never miss a post. Get Risky Business tips and insights delivered right to your inbox.
Almost time...stop by Table 43 and say hi! pic.twitter.com/pGDTSZLx7X
Didn't catch our webinar on our Bankruptcy Evidence Verification (BEV) tool? Here's a recap. Learn why we created o… https://t.co/NpQElYHPhn
Our data shows that mesothelioma filings seem to be trending down, albeit very slowly. However, many asbestos defen… https://t.co/eQk3dWVYQU
You have thousands of cases and many stakeholders needing to access, update, share, and store the same data. That's… https://t.co/02vBnt0p6u
Last Feb., we wrote about the Maryland asbestos docket and how a recent case that ruled proper application of the S… https://t.co/2Nh7CvabA4
We wish everyone a safe and joyful holiday season! pic.twitter.com/Z79A5DRusD
Jonathan Terrell is the Founder and President of KCIC. He has more than 30 years of international financial services experience with a multi-disciplinary background in accounting, finance and insurance. Prior to founding KCIC in 2002, he worked at Zurich Financial Services, JP Morgan, and PriceWaterhouseCoopers.Learn More About Jonathan