Berkshire Hathaway Assurance Corporation (New York) is a vital asset for the Berkshire Hathaway Group. It brings in a steady income through its bond insurance business.
Additionally, BHA aids Berkshire Hathaway in diversifying its investment portfolio and lowering its risk.
Berkshire Hathaway Assurance Corporation (New York)
Berkshire Hathaway Assurance Corporation (New York) (BHA) is a part of the Berkshire Hathaway Group, led by Warren Buffett.
It was established in 2007 and holds licenses to operate in all 50 states. With a strong financial rating, it’s known as a dependable bond insurer.
BHA’s primary focus is insuring municipal bonds, which are issued by local governments for projects like schools and roads.
BHA guarantees these bonds, ensuring investors get paid even if the municipality can’t meet its obligations.
Besides municipal bonds, BHA covers other bond types like revenue bonds (for projects like toll roads) and complex structured finance products, often backed by asset pools like mortgages.
BHA is a key player in the bond insurance market, covering a substantial portion of new municipal bonds in the US, along with various other bond types.
BHA greatly benefits the Berkshire Hathaway Group by providing a steady income stream and helping diversify their portfolio while reducing overall risk.
Contact Details
Berkshire Hathaway Assurance Corporation,
1314 Douglas Street,
Suite 1400, Omaha, NE 68102-1944
Phone: (402) 596-6000 Fax: (402) 596-6100
Services and Products
- Municipal Bond Insurance: BHA insures municipal bonds to ensure that if a city or local government can’t repay, BHA steps in to pay the bondholders.
- Revenue Bond Insurance: BHA insures revenue bonds, which are issued for projects like toll roads and airports, safeguarding them against defaults.
- Structured Finance Insurance: BHA provides insurance for complex financial instruments, often backed by asset pools like mortgages or auto loans.
- Financial Guaranty Insurance: BHA offers financial guaranty insurance to corporations and other entities, protecting investors against losses due to defaults on debt or financial instruments.
A wide range of customers, including state and local governments, special purpose entities, corporations, and investors, utilize BHA’s services and products.
Here are some specific examples:
- BHA insures bonds for a city building a new water treatment plant.
- BHA insures bonds for a state to fund a new highway construction project.
- BHA insures bonds for a special-purpose entity financing a new toll road.
- BHA insures a structured finance product backed by a pool of mortgages.
- BHA provides financial guaranty insurance to a corporation, shielding it from losses stemming from debt obligation defaults.
Financial Details
As of December 31, 2022, BHA had total assets of $10.2 billion and liabilities of $8.6 billion. The company had a net worth of $1.6 billion and a surplus of $1.4 billion.
Ratings
BHA has a financial strength rating of AAA (superior) from A.M. Best and AA+ (very strong) from Standard & Poor’s.
Claims Process
When a bond issuer defaults, BHA pays bondholders their principal and interest. Bondholders can submit a claim online or by mail.
BHA usually reviews and handles claims within 10 business days.
Cancellations and Renewals
BHA policies usually last for one year. BHA can end a policy with 30 days’ notice to the bond issuer. Bond issuers can renew their policies with BHA every year.
Affiliates and Partnerships
BHA belongs entirely to Berkshire Hathaway Inc. Berkshire Hathaway, a conglomerate, owns a diverse range of businesses, including insurance companies, railroads, and manufacturing companies.
Customer Reviews
BHA has a good reputation in the bond insurance industry. Customers praise the company for its financial strength and its customer service.
Internship and Career Opportunities
BHA provides internship and career chances in multiple fields, such as underwriting, accounting, and claims.
Benefits of Using Berkshire Hathaway Assurance Corporation (New York) (BHA)
- Financial Strength: BHA boasts a strong financial rating and gets support from the Berkshire Hathaway Group, making sure it can meet its financial commitments to investors.
- Reputation: BHA has a well-established history of delivering reliable bond insurance and is known for its integrity and financial stability.
- Expertise: BHA’s team includes experienced professionals with deep knowledge of the bond insurance market, enabling them to offer valuable advice and guidance to customers.
- Product Diversity: BHA offers a wide array of bond insurance products, including municipal bond insurance, revenue bond insurance, structured finance insurance, and financial guaranty insurance, catering to various customer needs.
Here are some common questions about Berkshire Hathaway Assurance Corporation (New York):
- What is bond insurance? Bond insurance guarantees bondholders will receive their principal and interest, even if the bond issuer defaults.
- Why is bond insurance important? Bond insurance makes bonds more attractive to investors, potentially lowering borrowing costs for issuers.
- Who are BHA’s customers? BHA’s customers include state and local governments and other public entities that issue bonds.
Nick Greenlight is an experienced individual in the financial sector, with knowledge spanning from investment management to income tax preparation.
He has been writing informative essays on personal finance for over a decade and holds several credentials.