What’s new: In brief (April 21, 2005)

Fitch Ratings has revised the outlook on Gen Re parent Berkshire Hathaway to negative, but says General Re’s own rating is stable. The “AAA” rating on Berkshire Hathaway is in doubt based on what the rater calls “key person risk” as a result of chairman Warren Buffet’s age, as well as the impact of current investigations of finite reinsurance on the reputation of Gen Re. “Although the 74-year-old Mr. Buffett is reportedly in good health and has expressed no intention of retiring, Fitch does not believe that Mr. Buffett’s talents can be easily replaced, or that Berkshire’s current strategies would be sustainable in his absence,” the rater notes. However, the rater says it does not expect the investigations to impact Berkshire Hathaway’s “exceptional” capital position, and notes the strong results posted by the company’s insurance subsidiaries in the past two years.

CARSTAR Automotive Canada has created a new 1-800-CARSTAR hotline for drivers who have been in a car accident. The collision repair company recently conducted a poll which revealed drivers are divided on who to call following an accident, with 31% saying they would call 9-1-1, 22% saying they would call a family members and 12% saying they do not know who they would call. Similarly, more than one-third do not know they are obligated to inform their insurer following an accident. The “accident assistance” line will help drivers with towing arrangements, car rentals and insurance company contacts, as well as directing them to the nearest CARSTAR center. The service is free and is available to Canadians both here and when they travel in the U.S.

Public meetings on mandatory auto insurance premiums in Alberta are set for June 27-28 in Edmonton and June 29-30 in Calgary. Those wishing to have input into the consultations must file a letter of intent by May 12, including a list of issues to be discussed and whether the submission will be in writing or via a presentation. For information on filing a letter of intent, including which topics will be under review at the consultations and which will not, visit www.airb.gov.ab.ca.