buffett

Buffett to the rescue
Alexander Liddington-Cox
Published 7:01 AM, 8 Jun 2012 Last

Suncorp Group, Berkshire Hathaway, Warren Buffett

Suncorp Group shares comfortably outperformed the broader market yesterday amid speculation that the insurer has pulled off a sensational deal with the world’s most famous investor, Warren Buffett.

According to industry magazine The Insurance Insider, Berkshire has agreed to write the whole limit of Suncorp’s New Zealand catastrophe cover, thought to be in the order of $US200 million.

The Australian insurer was expected to struggle to recover from the New Zealand earthquakes, having dramatically increased the payout estimates just weeks after the last renewal.

According to media reports, Suncorp has declined to address the speculation that Buffett’s famous investment firm is involved, merely stating that the agreement is still being finalised.

Buffett’s endorsement in any context is hardly foolproof. But his penchant for dealing with companies that have good managers and letting them do the rest would make for a terrific endorsement for Suncorp.