Liberty Mutual Cedes $3.3B In Liabilities To Berkshire

Warren Buffet’s Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) agreed to backstop for $6.5 billion of Liberty Mutual Holding Co’s obligations tied to asbestos, environmental and workers compensation policies.

The diversified global insurer said in a statement that it forked over $3 billion for the $6.5 billion of coverage in total from Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) subsidiary National Indemnity Company (NICO).

Ceded $3.3 billion liabilities

In a statement, Liberty Mutual said it has ceded approximately $3.3 billion of existing liabilities under a retroactive reinsurance agreement. Moreover, NICO...