The Real Deal Miami

Florida goes to Buffett for hurricane fund

July 03, 2008 01:12PM

State officials have voted to pay $224 million to billionaire Warren Buffett’s company Berkshire Hathaway, in an agreement that reinsures home insurance companies in the case of losses from hurricane claims. The deal allows the state to borrow $4 billion from Berkshire Hathaway for its hurricane catastrophe fund, which was created in 1993 after Hurricane Andrew, and provides coverage for insurance companies. Both Attorney General Bill McCollum and Chief Financial Officer Alex Sink complained that the terms of the deal don’t require Berkshire Hathaway to help the fund until losses have exceeded $25 billion.