Extremely strong competitive position with a leadership presence in the insurance and reinsurance sectors, including pricing power, cycle management, distribution, and underwriting competitive advantages. Experienced and focused management team that has created a corporate culture focused on risk selection, price adequacy, and not market share. Berkshire Hathaway Inc. (BRK) maintains a competitive advantage in terms of its capital size ($102 billion at Q3 2006) and its extremely strong insurance and reinsurance capitalization with a capital adequacy ratio (CAR) of 191% at Q3 2006. Very strong operating performance. Extremely strong financial flexibility supported by the uncorrelated and diversified noninsurance operations, and the ability to borrow at rates well-below peers. Exposure to severe catastrophic losses, but well contained through management of full
