General Re 888146 218999419 2008-06-13T03:12:13Z Mulp 320624 /* External links */ [[Image:GenRe.gif|right]]'''General Re''' is a [[reinsurance]] company. It is a subsidiary of [[Berkshire Hathaway]] Corporation. ==Business== General Re is one of the world's largest reinsurers. As a reinsurer, it "insures insurance companies" i.e. it will pay a portion of an insurance company's claims in exchange for a portion of the premium received by the insurance company for policies that cover those claims. "Gen Re" is a wholly owned subsidiary of [[Berkshire Hathaway]], the holding company run by legendary investor [[Warren Buffett]]. In good years, General Re is a large source of cash flow to Berkshire Hathaway and has provided much of the cash that is then used by the company to acquire additional subsidiaries. However, since General Re was acquired in December of 1998, it has run into a string of business and profitability issues that may have Buffett questioning the wisdom of the acquisition. Problems have included emergence of losses on unprofitable business written in the 1990s and earlier, concentration of risk (and therefore huge claims) in reinsurance agreements covering 9/11 losses and most recently, questionable accounting practices on "finite risk" reinsurance contracts written with insurance giant [[American International Group]] in 2002. ==External links== *[http://www.genre.com/ Welcome to Gen Re] *[http://news.bbc.co.uk/2/hi/business/2817995.stm BBC:"Buffett warns on investment 'time bomb'"] 4 March, 2003 ===Articles=== *[http://www.smh.com.au/news/Business/SEC-probes-Buffett-insurer/2004/12/31/1104344983540.html SEC probes Buffett insurer - Business - www.smh.com.au] ===Data=== *[http://biz.yahoo.com/ic/10/10643.html Yahoo! - General Re Corporation Company Profile] {{Berkshire Hathaway}} [[Category:Berkshire Hathaway]] [[Category:Insurance companies of the United States]] [[Category:Reinsurance companies]] {{insurance-company-stub}} [[ko:젠 리]] [[ru:General Re]]