OMAHA, Neb. (AP) — Billionaire Warren Buffett says his Berkshire Hathaway conglomerate may take the unusual step of selling one of its insurance companies.
Buffett told CNBC Monday that Berkshire has reached an agreement to sell Applied Underwriters, which sells workers’ compensation insurance. But Buffett said state regulators will have to sign off on the deal before it can go forward.
Buffett said Applied Underwriters is a smaller firm that has to compete against two larger insurance companies Berkshire owns that also sell workers’ compensation coverage.
It’s usual for Berkshire to sell or close any of its companies. Buffett says his preferred holding period for an acquisition is forever.
In the past, the only exception Buffett has made to this policy is for businesses that face the prospect of never-ending operating losses.
