Berkshire to bear 3-5% of Katrina losses

Berkshire Hathaway (BRK.A; BRK.B) estimates “it will incur 3-5% of the industry losses associated with Hurricane Katrina,” the company has announced.Industry losses have recently been estimated at anywhere between $40 billion to $60 billion. If these figures hold true, Berkshire’s estimate would amount to losses of anywhere in the range of US$1.2 billion to $3 billion.”Due to the extraordinary devastation created by Hurricane Katrina, it is particularly difficult to estimate an industry loss for this event and we don’t intend to at this time,” the company said in a press release. “However, Berkshire Hathaway has previously stated that it expects its share of losses from catastrophes such as Hurricane Katrina to be 3-5%. Berkshire continues to believe this to be true. “Berkshire Hathaway and its subsidiaries, including Gen Re offices in Montreal and Toronto, engage in a number of diverse business activities among which the most important is the property and casualty business conducted on both a direct and reinsurance basis.