More than SG$70 billion loss but Buffett believes insurance business won’t be as hard hit as others

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Berkshire Hathaway Inc., the parent company of Berkshire Hathaway Specialty Insurance (BHSI), has posted a US$49.75 billion (around SG$70.5 billion) net loss attributable to Berkshire shareholders in the first quarter of 2020.

In the same period last year, the multinational conglomerate enjoyed net earnings of US$21.66 billion (around SG$30.7 billion). The negative result this time around, which was announced over the weekend, included investment losses amounting to US$54.52 billion (around SG$77.3 billion).   

Berkshire Hathaway chief executive Warren Buffett, however, doesn’t seem too worried moving forward, particularly when it comes to the group’s insurance business.

During the company’s May 02 shareholder

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John Neal believes coronavirus will likely be most expensive insurance event in history

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Lloyd’s chief John Neal has suggested that the coronavirus pandemic is likely to be the most expensive event in history for the insurance industry, including widescale disasters such as Hurricane Katrina and the 9/11 terror attacks. Neal said that the pandemic was the largest insurance challenge ever faced by the industry and that losses of tens of billions, if not hundreds of billions, will be discussed over time.

“The chances of the market making anything other than a notable loss in 2020 are zero,” Neal said in an interview with The Financial Times.

With insurers set to pay out

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