re insurance company

8/7/2019 Re Insurance Company

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von Finck served as Chairman of the supervisory board until 1924. Munich Re became renowned after

the San Francisco Earthquake of 1906 as the only insurer that remained solvent after paying out all the

claims.

Structure

Besides its reinsurance business, the Munich Re Group also transacts primary insurance business

through the ERGO Group, and, since 1999, asset management through MEAG (MUNICH ERGO

AssetManagement GmbH). In 2009, the Groups gross premiums written totalled around 41.4bn.

Reinsurance

Munich Re has around 5,000 clients (insurance companies) in about 150 countries. It assumes part of the

risk covered by these insurance companies, as well as providing comprehensive advice on insurance

business. In addition to its Munich head office, Munich Re has more than 50 Business Units around the

world. Munich Re provides reinsurance cover for life, health, casualty, transport, aviation, space, fire and

engineering business. In 2009, gross premiums written in the reinsurance segment amounted to around

24.8bn.

Primary insurance: ERGO Group

Res primary insurance operations are mainly concentrated in the ERGO Insurance Group. ERGO writes

all types of life and health insurance and most types of property and casualty insurance. Outside

Germany, ERGO is present in more than 30 countries around the world, servicing around 40 millionclients. Members of the ERGO Group include the insurance subsidiaries D.A.S., DKV and Europische

Reiseversicherung AG, and the IT service providerITERGO. With a gross premium written of 17.5bn in

2009, ERGO is Germanys second-largest primary insurance group following Allianz AG. Munich Re's

primary insurance business is more Germany centric than its reinsurance business with 74% of the

company's 2009 premium income under this business segment coming from Germany.[4]

Asset management

Founded in 1999, MEAG MUNICH ERGO AssetManagement GmbH manages the assets of Munich Re,

ERGO, and external clients. The company manages more than 50 investment funds for policyholders andprivate and institutional investors. Assets under MEAG management total around 191bn (as at 30

September 2009).

[edit]Munich Health


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Until the end of 2009 this segment of the company was under reinsurance and primary insurance

however since the beginning of 2010 it is the company's fourth major division. It oversees all of the

group's health reinsurance as well as health primary insurance business abroad (outside of Germany).

[edit]Ownership (as of 12/2009)

AllianceBernstein L. P., (AXA S.A. Versicherung 2.52 %), Anteil ist als reine Finanzanlage ohne

strategische Interessen qualifiziert

UBS (1.69 %)

Barclays Global Investors UK Holdings Limited (3.01 %)

Cevian Capital (3 %)

Allianz SE, Mnchen (1.9 %)

Berkshire Hathaway Inc. (10.0%)

Free float is stated to be 100%, with around 128,000 shareholders (December 2009).

Shareholder profile:

Institutional investors (78.3 %)

Private shareholders (8.9 %)

Investment companies (11.4 %)

Insurance companies (1.2 %)

Banks (0.2 %)

Most shareholders are located in Germany (31.0%), followed by other European countries (around

27.3%) and North America (around 23.0%), before the UK (around 16.2%).

[edit]Key figures

Accounts prepared according to IFRS.

Important Key figures Munich Re[1]

Year 2005 2006 2007 2008 2009

Gross premiums written (bn) 38.2 37.4 37.3 37.8 41.4

Operating result (bn) 4.156 5.877 5.573 3.834 4.721


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Headquarters Zurich, Switzerland

Key people Stefan Lippe(CEO), Walter

Kielholz (Chairman)

Products Reinsurance, insurance,asset

management

Revenue CHF 33.38 billion(2009)[1]

Profit CHF 506 million (2009)[1]

Total assets CHF 240.6 billion (2009)[1]

Employees 10,552 (2009)[1]

Website www.swissre.com

Swiss Re (Schweizerische Rckversicherungs-Gesellschaft AG, SIX: RUKN) is

a Swissreinsurance company. It is the worlds second-largest reinsurer, after

having acquired GE Insurance Solutions.[2] Founded in 1863, Swiss Re operates

through offices in more than 25 countries.

History

The Swiss Reinsurance Company of Zurich was founded on December 19, 1863 by

the Helvetia General Insurance Company (now using thetrade

name ofHelvetia insurance) in St. Gallen, the Schweizerische Kreditanstalt (Credit

Suisse) in Zurich and the BaslerHandelsbank (predecessor ofUBS AG) bank

in Basel.


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On 10/11 May 1861, more than 500 houses went up in flames in the town of

Glarus. Two thirds of the town sank into rubble and ashes; around 3000 inhabitants

were made homeless. Like the fire ofHamburg in 1842 (which led to the foundation

of the first professional reinsurers in Germany, [1]), the great fire of Glarus in 1861

showed that insurance coverage was totally inadequate in Switzerland in the event

of such a catastrophe. Hence the need to provide more effective means of coping

with the risks posed by such devastation.

The companys articles of association were approved by the government of the

Canton of Zurich on 19 December 1863. The foundation capital, which was 15%

paid up, amounted to 6 million Swiss francs. The official foundation document bore

the signature of the poet Gottfried Keller, who at the time was first secretary of the

Canton of Zurich.

The Swiss Reinsurance Company was the lead insurer of the World Trade

Centerduring the September 11 attacks which led to an insurance dispute with the

owner, Silverstein Properties.

In 2009, Warren Buffett invested $2.6 billion as a part of Swiss Re's raising equity

capital.[3][4] Berkshire Hathaway already owns a 3% stake, with rights to own more

than 20%.[5]

Office locations

The group have offices in over 20 countries. In Europe, Swiss Re have offices

located in Denmark, France, Germany, Italy, Luxembourg, Netherlands, Slovak

Republic, Spain, Switzerland and the United Kingdom. In Asia, the group have

offices in the following countries : Australia, China, Hong Kong, India, Israel, Japan,

Malaysia, Singapore, South Korea. Their only African office is located in South

Africa. There are also offices in the following American countries : Barbados, Brazil,

Canada, Mexico, United States.

Corporate headquarters

Swiss Re is headquartered in Zurich where the parent companys main premises

has stood on the shores ofLake Zurich since 1864. On 31 October 2008, Swiss Re

completed GBP 762 million acquisition ofBarclays PLC's Barclays Life Assurance

Company Ltd.

London headquarters


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Its new London headquarters are located in the award-winning 30 St Mary

Axe tower, which opened on May 25, 2004. 30 St Mary Axe is London's first

environmentally sustainable tall building. Among the building's most distinctive

features are its windows, which open to allow natural ventilation to supplement the

mechanical systems for a good part of the year.

The landmark London skyscraper, designed by architect Norman Fosterand

popularly known as 'the gherkin, was confirmed sold on February 5, 2007 for over

600 million (US$1.18 billion) to a group formed of IVG Immobilien AG of Germany

and Evans Randall of Mayfair.[6]

American headquarters

TheAmerican headquarters of Swiss Re are located inArmonk, New York, on a

127-acre (52 hectares) site overlooking Westchester Countys Kensico Reservoir.

The facility, which houses more than 1,000 employees from the companys Life &

Health and Property & Casualty business units, was completed in 1999 and

expanded in 2004.

Swiss Re also has offices inAtlanta, Boston, Calabasas, Chicago, Dallas, Fort

Wayne, Kansas City, Manchester, New York City, Philadelphia, San

Francisco, Schaumburg, Illinois, andWindsor. Swiss Re's Canadian office

in Toronto, Swiss Reinsurance Company Canada, was named one ofGreater

Toronto's Top Employers by Mediacorp Canada Inc. in October 2008, which was

announced by the Toronto Starnewspaper.[7]

Subsidiaries

Broker dealerSwiss Re Capital Markets (SRCM), is a broker-dealerand underwriter

and developer in the insurance-linked securities market. Since 1997 SRCM has

underwritten over USD 15 billion of ILS including Insurance-Linked Bonds (ILBs) also

known as Catastrophe Bonds (Cat Bonds) for third-party clients and its parent, Swiss

Re.

Swiss Re Capital Markets has developed new security types such as earthquake

bonds. Swiss Re Capital Markets also developed the parametric index trigger, the

ILS shelf program, the first ILS synthetic CDO, and the first extreme mortality bond

(linked to life risk).


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In 2006, Fox-Pitt, Kelton completed a management buyout backed by J.C. Flowers

& Co. Swiss Re had acquired FPK, a financial services focused investment

banking boutique andbrokerage in 1998 for $200 million.[8]

Berkshire Hathaway (NYSE: BRK.A, NYSE: BRK.B) is a conglomerateholding

company headquartered in Omaha, Nebraska, United States, that oversees and

manages a number ofsubsidiary companies. The company averaged an annual growth

in book value of 20.3% to its shareholders for the last 44 years, while employing large

amounts of capital, and minimal debt.[1] Berkshire Hathaway stock produced a total

return of 76% from 2000-2010 versus a negative 11.3% return for the S&P 500.[2]

Warren Buffett is the company's chairman and CEO. Buffett has used the "float"

provided by Berkshire Hathaway's insurance operations (paid premiums which are not

held in reserves for reported claims and may be invested) to finance his investments. In

the early part of his career at Berkshire, he focused on long-term investments in publicly

quoted stocks, but more recently he has turned to buying whole companies. Berkshire

now owns a diverse range of businesses including railroads, candy production, retail,

home furnishings, encyclopedias, vacuum cleaners, jewelry sales; newspaper

publishing; manufacture and distribution of uniforms; as well as several regional electric

and gas utilities.

Contents

[hide]

1 History

2 Corporate affairs

o 2.1 Governance

o 2.2 Succession plans

3 Businesses

o 3.1 Insurance group

o 3.2 Utilities and energy group

o 3.3 Manufacturing, service, and retailing

3.3.1 Apparel

3.3.2 Building products

3.3.3 Flight services

3.3.4 Retail


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3.3.5 Other non-insurance

o 3.4 Finance and financial products

o 3.5 Investments

3.5.1 Equ

ities beneficial ownership 3.5.2 Bonds

3.5.3 Other

4 Assets

5 Notes

6 External links

Berkshire Hathaway Re

Hathaway Mills, New Bedford, Mass.

Berkshire Hathaway traces its roots to a textile manufacturing company established

by Oliver Chace in 1839 as the Valley Falls Company in Valley Falls, Rhode Island.

Chace had previously worked forSamuel Slater, the founder of the first successful

textile mill in America. Chace founded his first textile mill in 1806. In 1929 the Valley

Falls Company merged with the Berkshire Cotton Manufacturing Company establishedin 1889, inAdams, Massachusetts. The combined company was known as Berkshire

Fine Spinning Associates.[3]

In 1955 Berkshire Fine Spinning Associates merged with the Hathaway Manufacturing

Company which was founded in 1888 in New Bedford, Massachusetts by Horatio

Hathaway. Hathaway was successful in its first decades, but it suffered during a general


10/33

decline in the textile industry afterWorld War I. At this time, Hathaway was run by

Seabury Stanton, whose investment efforts were rewarded with renewed profitability

after the Depression. After the merger Berkshire Hathaway had 15 plants employing

over 12,000 workers with over $120 million in revenue and was headquartered in New

Bedford, Massachusetts. However, seven of those locations were closed by the end of

the decade, accompanied by large layoffs.

In 1962, Warren Buffett began buying stock in Berkshire Hathaway. After some clashes

with the Stanton family, he bought up enough shares to change the management and

soon controlled the company.

Buffett initially maintained Berkshire's core business of textiles, but by 1967, he was

expanding into the insurance industry and other investments. Berkshire first ventured

into the insurance business with the purchase ofNational Indemnity Company. In the

late 1970s, Berkshire acquired an equity stake in the Government Employees Insurance

Company (GEICO), which forms the core of its insurance operations today (and is a

major source of capital for Berkshire Hathaway's other investments). In 1985, the last

textile operations (Hathaway's historic core) were shut down.

[edit]Corporate affairs

Berkshire's class A shares sold for $99,200 as of December 31, 2009, making them the

highest-priced shares on the New York Stock Exchange, in part because they have

never had astock split and never paid a dividend, retaining corporate earnings on itsbalance sheet in a manner that is impermissible for private investors and mutual funds.

Shares closed over $100,000 for the first time on October 23, 2006 and closed at an all-

time high of $150,000 on December 13, 2007. Despite its size, Berkshire has not been

included in broad stock market indices such as the S&P 500 due to insufficient liquidity

in its shares; however, following a 50-to-1 split of Berkshire's class B shares in January

2010, Standard and Poor's announced that Berkshire would replace Burlington Northern

in the S&P 500, on a date to be announced.[4]

Berkshire's CEO, Warren Buffett, is respected for his investment prowess and his deepunderstanding of a wide spectrum of businesses. His annual chairman letters are read

and quoted widely. Barron's Magazine named Berkshire the most respected company in

the world in 2007 based on a survey of American money managers.[5]

In 2008, Berkshire invested in preferred shares of Goldman Sachs as part of a

recapitalization of the investment bank. Buffett defended Goldman CEO Lloyd


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Blankein's $132 million pay package when the company had taken and not yet paid

back $10 billion in TARP money from the United States Department of Treasury.[6][7][8]

As of 2005,[dated info] Buffett owned 38% of Berkshire Hathaway. Berkshire's vice-

chairman, Charlie Munger, also holds a stake big enough to make him a billionaire, and

early investments in Berkshire by David Gottesman and Franklin Otis Booth resulted in

their becoming billionaires as well. Bill Gates' Cascade Investments LLC is the second

largest shareholder of Berkshire and owns more than 5% of class B shares.

Berkshire Hathaway is notable in that it has neversplit its shares, which not only

contributed to their high per-share price but also significantly reduced the liquidity of the

stock. This refusal to split the stock reflects the management's desire to attract long-

term investors as opposed to short-term speculators. However, Berkshire Hathaway has

created a Class B stock, with a per-share value originally kept (by specific management

rules) close to 130 of that of the original shares (now Class A) and 1200 of the per-share

voting rights, and after the January 2010 split, at 11,500 the price and110,000 the voting

rights of the Class-A shares. Holders of class A stock are allowed to convert their stock

to Class B, though not vice versa. Buffett was reluctant to create the class B shares, but

did so to thwart the creation ofunit trusts that would have marketed themselves as

Berkshire look-alikes. As Buffett said in his 1995 shareholder letter: "The unit trusts that

have recently surfaced fly in the face of these goals. They would be sold by brokers

working for big commissions, would impose other burdensome costs on their

shareholders, and would be marketed en masse to unsophisticated buyers, apt to beseduced by our past record and beguiled by the publicity Berkshire and I have received

in recent years. The sure outcome: a multitude of investors destined to be

disappointed."

Berkshire's annual shareholders' meetings, taking place in the Qwest Centerin Omaha,

Nebraska, are routinely visited by 20,000 people.[9] The 2007 meeting had an

attendance of approximately 27,000. The meetings, nicknamed

"Woodstock forCapitalists", are considered Omaha's largest annual event along with

the baseball College World Series.

[10][dead link]

Known for their humor and light-heartedness, the meetings typically start with a movie made for Berkshire shareholders.

The 2004 movie featuredArnold Schwarzeneggerin the role of "The Warrenator" who

travels through time to stop Buffett and Munger's attempt to save the world from a

"mega" corporation formed by Microsoft-Starbucks-Wal-Mart. Schwarzenegger is later

shown arguing in a gym with Buffett regarding Proposition 13.[11] The 2006 movie

depicted actresses Jamie Lee Curtis and Nicollette Sheridan lusting after


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Munger.[12] The meeting, scheduled to last six hours, is an opportunity for investors to

ask Buffett questions.

The salary for the CEO is US$100,000 per year with no stock options, which is among

the lowest salaries[13] for CEOs of large companies in the United States.[14]

[edit]Governance

The current members of the board of directors of Berkshire Hathaway are: Warren

Buffett, Charlie Munger, Walter Scott, Jr., Thomas S. Murphy, Howard Graham

Buffett, Ronald Olson,Donald Keough, Charlotte Guyman, David Gottesman, Bill Gates,

Stephen Burke and Susan Decker.[15]

[edit]Succession plans

In May 2010, Buffett, months away from his 80th birthday, said he would be succeeded

at Berkshire Hathaway by a team consisting of a CEO and three or four investment

managers; each of the latter would be responsible for a "significant portion of

Berkshire's investment portfolio."[16] Five months later, Berkshire announced that Todd

Combs, manager of the hedge fund Castle Point Capital, would join them as

an investment manager.[17]

[edit]Businesses

[edit]Insurance group

Insurance and reinsurance business activities are conducted through approximately 70domestic and foreign-based insurance companies. Berkshires insurance businesses

provide insurance and reinsurance of property and casualty risks primarily in the United

States. In addition, as a result of the General Re acquisition in December 1998,

Berkshires insurance businesses also included life, accident and health reinsurers, as

well as internationally-based property and casualty reinsurers. Berkshires insurance

companies maintain capital strength at exceptionally high levels. This strength

differentiates Berkshires insurance companies from their competitors. Collectively, the

aggregate statutory surplus of Berkshires U.S. based insurers was approximately $48

billion at December 31, 2004. All of Berkshires major insurance subsidiaries are

ratedAAA by Standard & Poors Corporation, the highest Financial Strength Rating

assigned by Standard & Poors, and are rated A++ (superior) byA. M. Best with respect

to their financial condition and operating performance.


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GEICO Berkshire acquired GEICO in January 1996. GEICO is headquartered in Chevy

Chase, Maryland, and its principal insurance subsidiaries include: Government Employees

Insurance Company, GEICO General Insurance Company, GEICO Indemnity Company,

and GEICO Casualty Company. Over the past five years, these companies have offered

primarily private passenger automobile insurance to individuals in all 50 states and the

District of Columbia. The subsidiaries market their policies primarily through direct response

methods, in which applications for insurance are submitted directly to the companies by

telephone, through the mail, or via the Internet. In New York State, the statistics show

GEICO only pays 50% of their claims.

General Re Berkshire acquired General Re in December 1998. General Re held a 91%

ownership interest in Cologne Re as of December 31, 2004. General Re subsidiaries

currently conduct global reinsurance business in approximately 72 cities and provide

reinsurance coverage worldwide. General Re operates the following reinsurance

businesses: North American property/casualty, international property/casualty, which

principally consists of Cologne Re and the Faraday operations, and life/health reinsurance.

General Res reinsurance operations are primarily based in Stamford, Connecticut and

Cologne, Germany. General Re is one of the largest reinsurers in the world based on net

premiums written and capital.

NRG (Nederlandse Reassurantie Groep) Berkshire acquired NRG, a Dutch life

reinsurance company, from ING Group in December 2007.

[18]

Berkshire Hathaway Assurance Berkshire created a government bond

insurance company to insure municipal and state bonds. These type bonds are issued by

local governments to finance public works projects such as schools, hospitals, roads, and

sewer systems. Few companies are capable of competing in this area.[18]

[edit]Utilities and energy group

Berkshire currently holds 83.7% (80.5% on a fully-diluted basis) of the MidAmerican

Energy Holdings Company. At the time of purchase, Berkshire's voting interest was

limited to 10% of the company's shares, but this restriction ended when the Public Utility

Holding Company Act of 1935 was repealed in 2005. A major subsidiary of

MidAmerican is CE Electric UK.

[edit]Manufacturing, service, and retailing


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[edit]Apparel

Berkshires apparel businesses include manufacturers and distributors of a variety of

clothing and footwear. Businesses engaged in the manufacture and distribution of

clothing includeUnion Underwear Corp. - Fruit of the Loom, Garan, Fechheimer

Brothers and Russell Corporation. Berkshires footwear businesses include H.H. Brown

Shoe Group,Acme Boots andJustin Brands. Berkshire acquired Fruit of the Loom on

April 29, 2002 for $835 million in cash. Fruit of the Loom, headquartered in Bowling

Green, Kentucky, is a vertically integrated manufacturer of basic apparel. Berkshire

acquired Russell Corporation on August 2, 2006 for $600 million or $18.00 per share.

[edit]Buildingproducts

In August 2000, Berkshire entered the building products business with the acquisition

ofAcme Building Brands. Acme, headquartered in Fort Worth, Texas, manufactures

and distributes clay bricks (Acme Brick), concrete block (Featherlite) and cut limestone

(Texas Quarries). Berkshire acquired Benjamin Moore & Co. in December 2000.

Benjamin Moore, headquartered in Montvale, New Jersey, is a formulator, manufacturer

and retailer of primarily architectural coatings, available principally in the United

States and Canada. Berkshire acquired Johns Manville in February 2001. JM has been

serving the building products industry since 1885 and is a manufacturer of fiber glass

wool insulation products for walls, attics and floors in homes and commercial buildings,

as well as pipe, duct and equipment insulation products. Berkshire acquired a 90%

equity interest in MiTek Inc.[19] in July 2001. MiTek is headquartered inChesterfield,Missouri and makes engineered connector products, engineering software and services,

and manufacturing machinery for the truss fabrication segment of the building

components industry. Berkshire acquired Shaw Industries, Inc. in 2001. Shaw,

headquartered in Dalton, Georgia, is the worlds largest carpet manufacturer based on

both revenue and volume of production. Shaw designs and manufactures over 3,000

styles of tufted and woven carpet and laminate flooring for residential and commercial

use under about 30 brand and trade names and under certain private labels. On August

7, 2003, Berkshire acquired Clayton Homes, Inc. Clayton, headquartered

nearKnoxville, Tennessee, is a vertically integrated manufactured housing company. At

year-end 2004, Clayton operated 32 manufacturing plants in 12 states. Claytons homes

are marketed in 48 states through a network of 1,540 retailers, 391 of which are

company-owned sales centers. On May 1, 2008, Mitek acquired Hohmann & Barnard a

fabricator of anchors and reinforcement systems for masonry. On October 3, 2008,


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Mitek acquired Blok-Lok, Ltd. of Toronto, Canada. On April 23, 2010, Mitek acquired the

assets of Dur-O-Wal from Dayton Superior Corporation.

[edit]Flightservices

In 1996, Berkshire acquired FlightSafety International Inc. FSIs corporate headquartersis located at LaGuardia Airport in Flushing, New York. FSI engages primarily in the

business of providing high technology training to operators of aircraft and ships.

FlightSafety is the world's leading provider of professional aviation training services.

Berkshire acquired NetJets Inc. in 1998. NJ is the worlds leading provider offractional

ownership programs for general aviation aircraft. In 1986, NJ created the fractional

ownership of aircraft concept and introduced its NetJets program in the United States

with one aircraft type. In 2004, the NetJets program operated 15 aircraft types. In late

1996, NJ expanded its fractional ownership programs to Europe via a joint venture

arrangement which is now 100% owned by NJ. The fractional ownership of aircraft

concept permits customers to acquire a specific percentage of a certain aircraft type

and allows them to utilize the aircraft for a specified number of flight hours per annum.

[edit]Retail

The home furnishings businesses are the Nebraska Furniture Mart, R.C. Willey Home

Furnishings, Star Furniture Company, and Jordans Furniture, Inc.CORT Business

Services Corporation was acquired in 2000 by an 80.1% owned subsidiary of Berkshire

and is the leading national provider of rental furniture, accessories and related services

in the rent-to-rent segment of the furniture rental industry.

In 2002 Berkshire acquired The Pampered Chef, LTD, the largest direct seller of kitchen

tools in the United States. Products are researched, designed and tested by TPC, and

manufactured by third party suppliers. From its Addison, Illinois headquarters, TPC

utilizes a network of more than 65,000 independent sales representatives to sell its

products through home-based party demonstrations, principally in the United States.

See's Candies produces boxed chocolates and other confectionery products in two

large kitchens in California. Sees revenues are highly seasonal with approximately 50%

of total annual revenues being earned in the months of November and December. Dairy

Queen services a system of approximately 6,000 stores operating under the names

Dairy Queen, Orange Julius and Karmelkorn that offer various dairy desserts,

beverages, prepared foods, blended fruit drinks, popcorn and other snack foods.


16/33

[edit]Othernon-insurance

On 25 December 2007, Berkshire Hathaway acquired Marmon Holdings Inc. Previously

it was a privately held conglomerate owned by the Pritzker family for over fifty years,

which owned and operated an assortment of manufacturing companies that produce

railroad tank cars, shopping carts, plumbing pipes, metal fasteners, wiring and water

treatment products used in residential construction.[20]

Berkshire acquired McLane Company, Inc. in May 2003 from Wal-Mart Stores, Inc.,

which brought on other subsidiaries such as Professional Datasolutions, Inc.

and Salado Sales, among others. McLane provides wholesale distribution and logistics

services in all 50 states and internationally in Brazil to customers that include discount

retailers, convenience stores, quick service restaurants, drug stores and movie theatre

complexes. Scott FetzerCompanies The Scott Fetzer Companies are a diversified

group of 21 businesses that manufacture and distribute a wide variety of products for

residential, industrial and institutional use. The three most significant of these

businesses are Kirby home cleaning systems, Wayne Water Systems and Campbell

Hausfeld products. Scott Fetzer also manufactures Ginsu Knives. The Buffalo

News publishes one edition daily from its headquarters in Buffalo, New York.

In 2002, Berkshire acquired Albecca Inc. Albecca is headquartered in Norcross,

Georgia, and primarily does business under the Larson-Juhl name. Albecca designs,

manufactures and distributes custom framing products, including wood and metal

molding, matboard, foamboard, glass, equipment and other framing supplies. Berkshireacquired CTB International Corp. in 2002. CTB, headquartered in Milford, Indiana, is a

designer, manufacturer and marketer of systems used in the grain industry and in the

production of poultry, hogs, and eggs. Products are produced in the United States and

Europe and are sold primarily through a global network of independent dealers and

distributors, with peak sales occurring in the second and third quarters.

[edit]Finance and financial products

Berkshire acquired XTRA Lease in September 2001. XTRA, headquartered in St. Louis,

Missouri, is a leading transportation equipment lessor. XTRA manages a diverse fleet of

approximately 105,000 units, constituting a net investment of approximately $1 billion as

of December 31, 2004. The fleet includes over-the-road and storage trailers, chassis,

intermodal piggyback trailers and domestic containers.

Clayton's finance business, (loans to manufactured home owners), earned $206 million

down from $526 million in 2007. Loan losses remain 3.6% up from 2.9%.[21]


17/33

[edit]Investments

[edit]Equities beneficial ownership

This includes some of the companies where a Berkshire Hathaway stake is 5% or more

of the outstanding stock, as reported in the last proxy statementSEC filing, and the

latest[when?]annual report. In order of percentage stake:

Wesco Financial Corporation (80%)

Moody's Corporation (19.1%)

USG (19.0%)

The Washington Post Company (18.2%)

American Express Co. (13.1%)

Wells Fargo (9.2%)

The Coca-Cola Company (8.6%)

[edit]Bonds

Berkshire owns $27 billion in fixed income securities, mainly foreign government bonds

and corporate bonds.[22]

[edit]Other

In 2003, Pepsi paid Berkshire 10 million dollars to insure against a contest they had

which had a potential 1 billion dollar prize to be given out. [23] The prize had a very small

chance to be given out and it was not won by anyone.In 2008, Berkshire purchased preferred stock in Wrigley, Goldman Sachs,

and GE totaling $14.5 billion.[24]

Berkshire made $3.5 billion on its investment in preferred shares of Goldman Sachs.

However, Berkshire and Buffett have been widely criticized for Buffett's defense of Lloyd

Blankfein's $132 million pay package[citation needed] while they owed the United States

Department of Treasury $10 billion in TARP money.

On May 1, 2010 at the Berkshire shareholders meeting, Buffett also defended Goldman

over $1 billion in collateralized debt obligation fraud allegations saying that its clients

made a calculated risk.[citation needed]

On November 3, 2009, Berkshire Hathaway announced that, using stock and cash

totaling $26 billion, it would acquire the remainder ofBNSF Railway that it did not

already own.[25] This is the largest acquisition in Berkshire's history.


18/33

[ed

Hannover Re

From Wikipedia, the free encyclopedia

Hannover Rckversicherung AG

Type Aktiengesellschaft (FWB:HNR1)

Industry Financial services

Founded 1966

Headquarters Hannover, Germany

Key people Ulrich Wallin (CEO and Chairman of the executive

board), Herbert K. Haas (Chairman of

thesupervisory board)

Products Reinsurance

Operating

income

1.140 billion (2009)[1]

Profit 731.2 million (2009)[1]

Total assets 42.26 billion (2009)[1]

Employees 2,069 (2009)[1]


19/33

Website www.hannover-re.com

Hannover Re (in GermanHannover Rckversicherung AG), with a gross premium of

around10 billion, is one of the leading reinsurancegroups in the world. Itsheadquarters are in Hannover, Germany.

The company was founded in 1966 under the nameAktiengesellschaft frTransport

und Rckversicherung(ATR).

Hannover Re transacts all lines of non-life and life and health reinsurance. It maintains

business relations with more than 5,000 insurance companies in about 150 countries.

Its worldwide network consists of more than 100 subsidiaries, branch and

representative offices on all five continents with a total staff of roughly 2,100.

The rating agencies most relevant to the insurance industry have awarded Hannover Re

very strong insurer financial strength ratings (Standard & Poor's AA- "Very Strong" and

A.M. Best A "Excellent").

Lloyd's ofLondonFrom Wikipedia, the free encyclopedia

Not to be confused with Lloyds TSBorLloyd's Register.

For the film, see Lloyd's of London (film).

Lloyd's

Type Insurance market

Industry Insurance

Reinsu

rance

Founded 1774

(Society of Lloyd's)

1871

(Incorporation of Lloyd's)


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Founder(s) Edward Lloyd

Headquarters 1, Lime Street

London, United Kingdom

Key people Lord Levene

(Chairman)

Richard Ward

(Chief executive officer)

Website lloyds.com

The Lloyd's building (centre), with Tower 42 in the top-left

Lloyd's, also known as Lloyd's ofLondon, is a British insurance and reinsurance market.[1] It serves as

a partially-mutualised marketplace where multiple financial backers, underwriters, ormembers, whether

individuals (traditionally known as Names) or corporations, come together to pool and spread risk. Unlike

most of its competitors in the insurance and reinsurance industry, it is not a company. Uberrimae

fidei (meaning utmost good faith in Latin) is the motto of Lloyd's.

In 2009, over 21.97 billion of gross premium was transacted in Lloyd's, and it achieved a record pre-tax

profit of over 3.8 billion.[2] TheLloyd's building is located at 1 Lime Street in the City of London.


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Contents

[hide]

1 History

o 1.1 Formation

o 1.2 Early business

o 1.3 First Lloyd's Act

o 1.4 Changes in the UK financial markets

o 1.5 Second Lloyd's Act

o 1.6 198896

2 'Recruit to dilute'

3 Structure

o 3.1 Council of Lloyd's

o 3.2 Businesses at Lloyd's

3.2.1 Members

3.2.2 Managing agents

3.2.3 Members' agents

3.2.4 Lloyd's coverholder

3.2.5 Lloyd's brokers

3.2.6 Integrated Lloyd's vehicles

o 3.3 Market structure

o 3.4 Financial security

4 Asbestosis and unforeseen risk

5 Types of policies

6 Miscellaneous

7 Bibliography

8 See also

9 External links

o 9.1 Data

10 Footnotes

[edit]History

[edit]Formation


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The market began in Edward Lloyd's coffee house around 1688 in Tower Street, London. His

establishment was a popular place for sailors, merchants, and ship owners, and Lloyd catered to them

with reliable shipping news. The shipping industry community frequented the place to discuss insurance

deals among themselves. Just after Christmas 1691, the coffee shop relocated to Lombard Street (a blue

plaque commemorates this location). This arrangement carried on until 1774, long after Lloyd's death in

1713, when the participating members of the insurance arrangement formed a committee and moved to

the Royal Exchange on Cornhill as The Society of Lloyd's.

[edit]Early business

The Subscription Room in the early 19th century.

Due to the focus on marine business, during the formative years of Lloyd's (between 1688 and 1807 ), one

of the primary sources of Lloyd's business was the insurance of ships engaged in slave trading[3], as

Britain rapidly established itself as the chief slave trading powerin the Atlantic. British shipping carried

more than 3.25 million people into slavery[4], meaning that by the end of the eighteenth century, slave

trading had become one of the primary constituents of all British trade. The dangers involved necessarily

meant that insurance of slave-trade shipping was a major concern. Between 1689 and 1807, 1,053 British

vessels were lost whilst undertaking slave-trading activities.[5]

[edit]First Lloyd's Act

The Royal Exchange was destroyed by fire in 1838, and, although the building was rebuilt by 1844, many

of Lloyd's early records were lost. In 1871, the first Lloyd's Act was passed in Parliament which gave the

business a sound legal footing. The Lloyd's Act of 1911 set out the Society's objectives, which include the

promotion of its members' interests and the collection and dissemination of information.

The membership of the Society, which had been largely made up of market participants, was realised to

be too small in relation to the market's capitalisation and the risks that it was underwriting. Lloyd's

response was to commission a secret internal inquiry, known as the Cromer Report, which reported in

1968. This report advocated the widening of membership to non-market participants, including non-British


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subjects and women, and to reduce the onerous capitalisation requirements (which created a more minor

investor known as a mini-Name). The Report also drew attention to the danger ofconflicts of interest.

[edit]Changes in the UK financial markets

During the 1970s, a number of issues arose which were to have significant influence on the course of theSociety. The first was the tax structure in the UK: capital gains were taxed at 40 per cent, earned

income was taxed in the top bracket at 83 per cent, and investment income in the top bracket at 98 per

cent. Lloyd's income counted as earned income, even for Names who did not work at Lloyd's, and this

heavily influenced the direction of underwriting: in short, it was desirable for syndicates to make a (small )

underwriting loss but a (larger) investment profit. The losses were 98% funded by the taxpayer while the

gains largely accrued to the Names; when Margaret Thatcher's government greatly reduced the top rate

ofincome tax, the proportion of the losses paid by the Names increased astronomically. The investment

profit was typically achieved by 'bond washing' or 'gilt stripping': buying the bond 'cum dividend' and

selling it 'ex dividend', creating an income profit and a capital loss. Syndicate funds were also moved

offshore (which later created problems through fraud and self-dealing ).

Because Lloyd's had turned itself into a tax shelter, the second issue affecting Lloyd's was an increase in

its external membership, such that, by the end of the decade, the number of passive investors dwarfed

market investors. Thirdly, during the decade a number of scandals had come to light, including the

collapse of the Sasse syndicate and the disgrace of Christopher Moran, which had highlighted both the

lack of regulation and the legal inability of the Council to manage the Society.

Arising simultaneously with these developments were wider issues: firstly, in the United States, an ever-

widening interpretation by the Courts of insurance coverage in relation to workers' compensation in

relation to asbestos-related losses, which had the effect of creating a huge, and initially unrecognised and

then unacknowledged hole in Lloyd's reserves. Secondly, by the end of the decade, almost all of the

market agreements, such as the Joint Hull Agreement, which were effectively cartels mandating minimum

terms, had been abandoned under pressure of competition. Thirdly, new specialised policies had arisen

which had the effect of concentrating risk: these included 'run-off policies', under which the liability of

previous underwriting years would be transferred, and 'time and distance' policies, whereby reserves

would be used to buy a guarantee of future income.

[edit]Second Lloyd's Act

In 1980, SirHenry Fisherwas commissioned by the Council of Lloyd's to produce the foundation for a

new Lloyd's Act. The recommendations of his Report addressed the 'democratic deficit' and the lack of

regulatory muscle.


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The Lloyd's Act of 1982 further redefined the structure of the business, and was designed to give the

'external Names', introduced in response to the Cromer Report, a say in the running of the business

through a new governing Council.

Immediately after the passing of the 1982 Act, evidence came to light, and internal disciplinary

proceedings were commenced against, a number of individual underwriters who had siphoned sums from

their businesses to their own accounts. These individuals included a Deputy Chairman of Lloyd's, Ian

Posgate, and a Chairman, Sir Peter Green.

In 1986 the UK government commissioned Sir Patrick Neill to report on the standard of investor

protection available at Lloyd's. His report was produced in 1987 and made a large number of

recommendations but was never implemented in full.

[edit]198896

The main Underwriting Room in Lloyd's

In the late 1980s and early 1990s, Lloyd's went through the most traumatic period in its history.

Unexpectedly large legal awards in U.S. courts for punitive damages led to large claims by insureds,

especially on APH (asbestos, pollution and health hazard) policies, some dating as far back as the 1940s.

Many of these policies were designed to cover all liabilities not excluded on broadform liability policies.

Also in the 1980s Lloyd's was accused of fraud by several American states and the names/investors.

Some of the more high profile accusations included:

Lloyd's withheld their knowledge of asbestosis and pollution claims until they could recruit moreinvestors to take on these liabilities that were unknown to investors prior to investing in Lloyd's;

Enforcement officials in 11 U.S. states charged Lloyd's and some of its associates with various wrongs

such as fraud and selling unregistered securities;

Ian Posgate, one of Lloyd's leading underwriters, was charged with skimming money from investors

and secretly trying to buy a Swiss bank; he was later acquitted.


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[edit]'Recruit to dilute'

It may be wondered how the currentMembers of Lloyd's could be liable to pay these historical losses.

This came about as a result of the Lloyd's accounting practice known as 'reinsurance-to-close' (RITC ).

Membership of a Lloyd's Syndicate was not like owning shares in a company. An individual "joined" for

one calendar year only the famous Lloyd's annual venture. At the end of the year, the Syndicate as an

ongoing trading entity was effectively disbanded.

It was very common for the Syndicate to re-form for the next calendar year with more or less the same

membership and the same identifying number. In this way, a Syndicate couldappearto have a continuous

existence going back (in some cases) fifty years or more, but in reality it did not. There would have been

fifty separate incarnations of the Syndicate, each one a unique trading entity that underwrote insurance

for one calendar year only.

Claims take time to be reported and paid, so the profit or loss for each Syndicate took time to become

apparent. The practice at Lloyd's was to wait three years (that is, 36 months from the beginning of the

Syndicate) before 'closing' the year and declaring a result.

For example, a 2003 Syndicate would ordinarily declare its results at the end of December 2005. The

Syndicate's members would be paid any underwriting profit during the 2006 calendar year, in proportion

to their 'participation' in the Syndicate; conversely, they would have to reimburse the Syndicate during

2006 for their share of any underwriting loss.

Part of the result would include setting aside reserves for future claims payments; that is, reserves both

for claims that had been notified but not yet paid, and estimated amounts required for claims which have

been "incurred but not reported" (IBNR). The estimation process is difficult and can be inaccurate; in

particular, liability (or long-tail) policies tend to produce claims long after the policies are written.


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A clerk writing the details of a loss in the Loss Book

The reserve for future claims liabilities was set aside in a unique way. The Syndicate bought a

reinsurance policy to pay any future claims; the premium was the exact amount of the reserve. In other

words, rather than putting the reserve into a bank to earn interest, the Syndicate transferred its (strictly,

its Members') liability to pay future claims to a reinsurer. This was "reinsurance-to-close" a transaction

that allowed the Syndicate to be closed, and a profit or loss declared.

The reinsurer was always another Lloyd's Syndicate. In fact, it was nearly always the succeeding year of

the same Syndicate. The Members ofSyndicate Xin 2004 reinsured the future claims liabilities for

members ofSyndicate Xin 2003. The membership might be the same, or it might not.

In this manner, liability forpastlosses could be transferred year after year until it reached the current

Syndicate. A member joining a Syndicate with a long history of such transactions could and often did

pick up liability for losses on policies written decades previously. So long as the reserves had beencorrectly estimated, and the appropriate RITC premium paid every year, then all would have been well,

but in many cases this had not been possible. No one could have predicted the surge in APH losses.

Therefore, the amounts of money transferred from earlier years by successive RITC premiums to cover

these losses were insufficient, and the current members had to pay the shortfall.

(By contrast, within a stock company, an initial reserve for future claims liabilities is set aside immediately,

in year 1. Any deterioration in that initial reserve in subsequent years will result in a reduced profit-and-

loss for the later year, and a consequently reduced dividend and/or share price for shareholders in that

later year, whether or not those shareholders in the later year are the same as the shareholders in year1. Arguably, Lloyd's practice of using reserves in year 3 to establish the RITC premiums should have

resulted in a more equitable handling of long-tail losses such as APH than would the stock company

approach. Nevertheless, the difficulties in correctly estimating losses such as APH overwhelmed even

Lloyd's extended process.)

As a result a great many individual Members of syndicates underwriting long-tail liability insurance at

Lloyd's faced financial loss, even ruin, by the mid 1990s.

It is alleged that, in the early 1980s, some Lloyd's officials began a recruitment programme to enrol new

Names to help capitalise Lloyd's prior to the expected onslaught of APH claims. This allegation becameknown as recruit to dilute; in other words, recruit Names to dilute losses. When the huge extent

ofasbestosis losses came to light in the early 1990s, for the first time in Lloyd's history large numbers of

members refused or were unable to pay the claims, many alleging that they were the victims of fraud,

misrepresentation, and negligence. The opaque system of accounting at Lloyd's made it difficult, if not


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impossible, for many Names to realise the extent of the liability that they personally and their syndicates

subscribed to.

The market was forced to restructure. In 1996 the ongoing Lloyd's was separated from its past losses.

Liability forallpre-1993 business was compulsorily transferred (by reinsurance-to-close) into a special

vehicle called Equitas at a cost of over $21 billion and enormous personal losses to many Names.

The 'recruit to dilute' fraud allegations were heard at trial in 2000 in the case Sir William Jaffray & Others

v. The Societyof Lloyd's, and the appeal was heard in 2002. On each occasion the allegation that there

had been a policy of 'recruit to dilute' was rejected, however, at first instance the judge described the

Names as the innocent victims [...]of staggering incompetence and at appeal the Court found that

representations that Lloyd's had a rigorous auditing system were false ([item 376 of the judgment:] [...] the

answer to the question [...] whether there was in existence a rigorous system of auditing which involved

the makingof a reasonable estimate ofoutstanding liabilities, including unknown and unnoted losses, is

no. Moreover, the answer would be no even if the word 'rigorous' were removed.) and strongly hinted that

one of Lloyd's main witnesses, Murray Lawrence, a previous Chairman, had lied in his testimony ([item

405 of the judgment:] We have serious reservations about the veracityof Mr. Lawrence's evidence [...].).

Links:

First Instance judgment

Appeal judgment

Lloyd's then instituted some major structural changes. Corporate members with limited liability were

permitted to join and underwrite insurance. No new unlimited Names can join (although a few hundred

existing ones remain). Financial requirements for underwriting were changed, to prevent excess

underwriting that was not backed by liquid assets. Market oversight has significantly increased. It has

rebounded and started to thrive again after the September 11 attacks, but it has not regained its past

importance as newly created companies in Bermuda captured a large share of the reinsurance market.

[edit]Structure

Lloyd's is not an insurance company. It is an insurance market of members. As the oldest continuously

active insurance marketplace in the world, Lloyd's has retained some unusual structures and practicesthat differ from all other insurance providers today. Originally created as an unincorporated association of

subscribing members in 1774, it was incorporated by the Lloyd's Act 1871, and it is currently governed

under the Lloyd's Acts of 1871 through to 1982.


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Lloyd's itself does not underwrite insurance business, leaving that to its members (see below ). Instead

the Society operates effectively as a market regulator, setting rules under which members operate and

offering centralised administrative services to those members.

[edit]Council ofLloyd's

The Lloyd's Act 1982 defines the management structure and rules under which Lloyd's operates. Under

the Act, the Council ofLloyd's is responsible for the management and supervision of the market. It is

regulated by the Financial Services Authority (FSA) under the Financial Services and Markets Act 2000[6].

The Council normally has six working, six external and six nominated members [7]. The appointment of

nominated members, including that of the Chief Executive Officer, is confirmed by the Governor of the

Bank of England. The working and external members are elected by Lloyd's members. The Chairman

and Deputy Chairmen are elected annually by the Council from among the working members of the

Council. All members are approved by the FSA.

The Council can discharge some of its functions directly by making decisions and issuing resolutions,

requirements, rules and byelaws. The Council delegates most of its daily oversight roles, particularly

relating to ensuring the market operates successfully, to the Franchise Board.

The Franchise Board lays down guidelines for all syndicates and operates a business planning and

monitoring process to safeguard high standards of underwriting and risk management, thereby improving

sustainable profitability and enhancing the financial strength of the market.[8]

[edit]Businesses at Lloyd's

Interior escalators linking the underwriting floors of the current Lloyd's building

There are two classes of people and firms active at Lloyd's. The first are Members, or providers of capital.

The second are agents, brokers, and other professionals who support the Members, underwrite the risks

and represent outside customers (for example, individuals and companies seeking insurance or

insurance companies seeking reinsurance).


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[edit]Members

For most of Lloyd's history, rich individuals (Names) backed policies written at Lloyd's with all of their

personal wealth (unlimited liability). Since 1994, Lloyd's has allowed corporate members into the market,

with limited liability. The losses in the early 1990s devastated the finances of many Names (upwards of

1,500 out of 34,000 (4.4%) Names were declared bankrupt) and scared away others. Today, individual

Names provide only 14% of capacity at Lloyd's, with UK-listed and other corporate members providing

31% and the remainder via the international insurance industry [2]. No new Names with unlimited liability

are admitted, and the importance of individual Names will continue to decline as they slowly withdraw,

convert (generally, now, into Limited Liability Partnerships) or die.

[edit]Managingagents

Managing agents sponsor and manage syndicates. They canvas members for commitments of capacity,

create the syndicate, hire underwriters, and oversee all of the syndicate's activities. Managing agents

may run more than one syndicate.

[edit]Members'agents

Members' agents coordinate the members' underwriting and act as a buffer between Lloyd's, the

managing agents and the members. They were introduced in the mid 1970s and grew in number until

many went bust; many of the businesses merged, and there are now only four left (Argenta, Hampden,

Alpha and LMAS, which has no active Names). It is mandatory that unlimited Names write through a

members' agent, and many limited liability members choose to do so.

Recent results have benefited from tougher underwriting standards imposed by the Franchise Board and

improved terms and conditions following widespread underwriting losses during the period 1998 to 2001,

the September 11 attacks, and large hurricane-related property and energy claims in

both 2004 and 2005.

[edit]Lloyd'scoverholder

Coverholders are an important source of business for Lloyd's. [citation needed] Their numbers have increased

steadily in recent years, and there are now about 2,500 Lloyd's coverholders producing around 30% of

Lloyd's premium income each year.[citation needed] The balance of Lloyd's business is distributed around the

world through a network of brokers.[citation needed]Coverholders allow Lloyd's syndicates to operate in a

region or country as if they were a local insurer. This is achieved by Lloyd's syndicates delegating their

underwriting authority to coverholders. A coverholder can have full or limited authority to underwrite on

behalf of a Lloyd's syndicate. It will usually issue the insurance documentation and will often handle

claims. The document setting out the terms of the coverholders delegated authority is known as

a binding authority.


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[edit]Lloyd's brokers

Brokers and underwriters negotiating in the Room

Outsiders, whether individuals or other insurance companies, cannot do business directly with Lloyd's

syndicates. They must hire Lloyd's brokers, who are the only customer-facing companies at Lloyd's. They

are therefore often referred to as intermediaries. Lloyd's brokers shop customers' policies among the

syndicates, trying to obtain the best prices and terms.

[edit]IntegratedLloyd's vehicles

When corporations became admitted as Lloyd's members, they often disliked the traditional structure.

Insurance companies did not want to rely on the underwriting skills of syndicates they did not control, sothey started their own. An integrated Lloyd's vehicle (ILV ) is a group of companies that combines a

corporate member, a managing agent, and a syndicate under common ownership. Some ILVs allow

minority contributions from other members, but most now try to operate on an exclusive basis.

[edit]Market structure

Capital providers

1,238 corporate members

773 individual Names with unlimited liability

Market participants[2]

52 managing agents

84 syndicates

181 Lloyd's brokers


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Lloyd's is not publicly traded, though some of its members are listed companies, such as Hiscox

Ltd, Catlin Group Ltd and Hardy Underwriting Bermuda Ltd.

[edit]Financial security

Lloyd's capital structure, often referred to as the Chain of Security, provides financial security topolicyholders and capital efficiency to members. The Corporation is responsible for setting both member

and central capital levels to achieve a level of capitalisation that is robust and allows members the

potential to earn superior returns.

There are three 'links' in the chain: the funds in the first and second links are held in trust, primarily for the

benefit of policyholders whose contracts are underwritten by the relevant member. Members underwrite

for their own account and are not liable for other members' losses.

The third link the Central Fund contains mutual assets held by the Corporation which are available,

subject to Council approval, to meet any member's insurance liabilities. [2]

[edit]Asbestosis and unforeseen risk

The classic example of long-tail insurance risks are asbestosis claims under employers' liability or

workers' compensation insurances. A worker at an industrial plant may have been exposed to asbestos in

the 1960s, fallen ill 20 years later, and claimed compensation from his former employer in the 1990s. The

employer would report a claim to the insurance company that wrote the policy in the 1960s. However

because the insurer did not understand the full nature of the future risk back in the 1960s, it and its

reinsurers would not have properly reserved for it. In the case of Lloyd's this resulted in the bankruptcy of

thousands of individual investors who indemnified (via RITC) general liability insurance written from the

1940s to the mid 1970s for companies with exposure to asbestosis claims.

[edit]Types of policies

Lloyd's syndicates write a diverse range of policies, both direct insurance and reinsurance, covering

casualty, property, marine, energy, motor, aviation and many other types of risk [9]. Lloyd's has a unique

niche in unusual, specialist business such as kidnap and ransom, fine art, aviation, marine, and other

insurances.

The general public knows Lloyd's for some unusual or notable policies it has written. For example, Lloyd's

has insured:

silent film comedian Ben Turpin's eyes against uncrossing

Betty Grable's[10], Brooke Shields's, and Tina Turner's legs

cricketerMerv Hughes's trademark walrus mustache while playing for Australia between 1985-1994 [11]


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Jimmy Durante's nose

the hands of the 1932 World Yo-Yo ChampionHarvey Lowe[11]

Keith Richards' slender fingers

food critic and gourmet Egon Ronay's taste buds for 250,000[10]

Celine Dion's, Bob Dylan's and Bruce Springsteen's vocal cords[11]

Michael Flatley's legs for $47 million[11] (the policy was only in effect when he was touring, and forbade

him from dancing except on stage)

America Ferrera's smile for $10 million

Ken Dodd's teeth for $7.4 million[11]

Tempest Storm's breasts

Steve Fossett's life for $50 million

the bodies of several professional wrestlers, including Bret Hart, Ric Flair, Curt Hennig, Rick

Rude, Brian Adams, and Joe Laurinaitis, better known as Road Warrior Animal

Diana Lee's hair

Troy Polamalu's hair for $1 million[12]

participating automobiles in the carpools involved in the Montgomery Bus Boycott

a grain of rice with a portrait of the Queen and the Duke of Edinburgh engraved on it for $20,000[10]

a confident comedy theatre group against the risk of a member of their audience dying of laughter[10]

the development of the new World Trade Centerwith workers' compensation, general liability, excess

liability and speciality insurance programmes[13]

Lloyd's is in talks with Virgin Galactic to insure spaceflights.[14]

[edit]Miscellaneous


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The rostrum (foreground) which houses the Lutine Bell

The present Lloyd's building, at 1 Lime Street, was designed by architectRichard Rogers and was

completed in 1986. It stands on the site of the old Roman Forum. The 1925 facade still survives,

appearing strangely stranded with the modern building visible through the gates on the northern side

on Leadenhall Street.

In the great Underwriting Room of Lloyd's stands the Lutine Bell, which was struck when the fate of a ship

overdue at its destination port became known. If the ship was safe, the bell would be rung twice; if it had

sunk, the bell would be rung once. (This had the practical purpose of immediately stopping the sale or

purchase of overdue reinsurance on that vessel.) Now it is only rung for ceremonial purposes, such as

the visit of a distinguished guest (two rings), or for the annual Remembrance Day service and

anniversaries of major world events, such as 9/11(one ring).

The Lloyd's building was recently used in the beginning of the film Mamma Mia!to represent a New Yorkoffice building from where Pierce Brosnan's character left for the Greek island.

Lloyd's was named Business Insurance Readers Choice winner 2007 for Best Reinsurance Company.[15]

Lloyd's is also the main plotline in English author Penny Vincenzi's novel An Absolute Scandal(2007),

which centres around the scandals during the 1980s and 1990s told via a large ensemble cast.

re insurance company

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