Berkshire Weathers the Storms
Recent hurricanes add to a difficult year for the insurance business but have minimal impact on our valuation.
Given the storm damage and flooding created by hurricanes Harvey, Irma, and Maria during the third quarter, we find it unlikely that wide-moat Berkshire Hathaway (BRK.A)/(BRK.B) will come away unscathed.
With estimates of total insured damages from Harvey and Irma running at $50 billion-$70 billion and Maria looking to be a $40 billion-$85 billion event, 2017 is expected to be as one of the worst years for natural disasters since 2005, when hurricanes Katrina, Rita, and Wilma racked up more than $50 billion in total insured losses.
Greggory Warren does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.