Extremely strong competitive position. Experienced and focused management team. Extremely strong insurance and reinsurance capitalization. Extremely strong financial flexibility. Exposure to severe natural catastrophe losses, though exposure is well contained. Common stocks were about 65% of total shareholders' equity as of Sept. 30, 2007. National Indemnity Co. (NICO), a subsidiary, is subject to a significant amount of long-term claims payments assumed through retroactive reinsurance covers. It remains a concern if the culture and risk profile will be maintained following a management change, though we expect no changes. Berkshire Hathaway Inc. (BRK) is a unique holding company that owns a significant number of insurance, reinsurance, and noninsurance subsidiaries. The businesses include Berkshire Hathaway Insurance Group (BHIG), Berkshire Hathaway Reinsurance Group (BHRG),
