OMAHA, NEBRASKA - Billionaire investor Warren Buffett assured stockholders Saturday that Berkshire Hathaway's insurance operations are back on track after losses blamed on the terrorist attacks. <br>
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More than 10,000 shareholders attended Berkshire's annual meeting. <br>
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Buffett said insurance premiums held by Berkshire before payouts grew by $1.8 billion in the quarter ended March 31, and the company had an underwriting profit of $20 million during the period. <br>
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That contrasts with an underwriting loss last year of more than $4 billion. About $2.4 billion of that was blamed on the Sept. 11 attacks. <br>
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Berkshire's largest insurance company, General Re Corp., was hit hard by the attacks and policy mistakes, Buffett said. <br>
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Buffett said Berkshire now is accepting some insurance risks involving terrorism, but largely excluding chemical, biological or nuclear attacks. <br>
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Berkshire holds stock in a number of companies, including Coca-Cola Co., American Express and The Washington Post. It also owns furniture, paint, shoe and carpeting companies. <br>
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Berkshire's main business is insurance, and Buffett makes the company's investments with the money from insurance premiums. <br>
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Over six hours, Buffett and his vice chairman, Charlie Munger, answered questions about Berkshire's operations, which made $795 million last year, or $521 per share, despite the insurance losses. <br>
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Two stockholders questioned Coca-Cola's strength in light of stiff competition from Pepsi. <br>
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Buffett said Coca-Cola maintains its grip on about half the world's soft drink market, and he would be surprised if the company lost market share in the next five or 10 years.
