Berkshire Hathaway Specialty Insurance Company has hired three American International Group Inc. (AIG) veterans to help it set up a medical stop-loss business.
The specialty insurer, a unit of Berkshire Hathaway Inc. (NYSE:BRK.A), has brought in John Snyder to run the new division. Snyder previously was president of the Medical Excess L.L.C. division at AIG (NYSE:AIG).
David Friedly will run underwriting for the unit, and Glenn Funk will be the chief actuary.
Friedly was the head of employer underwriting for the AIG Benefit Solutions unit.
Funk was the chief actuary at Medical Excess from 2002 through 2011, and an actuary at AIG Benefit Solutions from 2011 through 2013. While at AIG Benefit Solutions, Funk handled the transplant carve out product line as well as medical stop-loss.
Berkshire Hathaway — Warren Buffett’s holding company — started the specialty insurance unit and hired Peter Eastwood, a former AIG Americas region president, to run the unit three years ago.
Buffett, who is known for his closely read annual letters to shareholders, said in his latest letter that he sees the decision to start the unit and put Eastwood in charge of it as a home run.
The unit “has already developed $1 billion of annual premium volume,” Buffett wrote. Buffett predicted that the unit will become one of the world’s leading property-casualty insurers.
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