Value Investing News

This is the actual press release from the Berkshire Hathaway website announcing the "agreement in principle" between Equitas and National Indemnity (a Berkshire subsidiary). Essentially, the deal calls for Berkshire to reinsure all of Equitas' liabilities, provide $7 billion in additional reinsurance, and take on the staff and operations of Equitas in run-off. The press release includes a quote from Buffett explaining the deal and the history behind it (especially worth reading if you aren't too familiar with Lloyd's history.

• http://berkshirehathaway.com/news/oct2006.html (2)