Showering praise on one of his most trusted people Ajit Jain, famed investor Warren Buffett on Saturday said the Indian-origin executive has added "a great many billions of dollars to the value of Berkshire Hathaway".
New York: Showering praise on one of his most trusted people Ajit Jain, famed investor Warren Buffett on Saturday said the Indian-origin executive has added "a great many billions of dollars to the value of Berkshire Hathaway".
Jain, who has been associated with Buffett's conglomerate Berkshire Hathaway since 1985, has long been considered as a potential candidate to succeed the billionaire investor.
"From a standing start in 1985, Ajit has created an insurance business with float of USD 34 billion and significant underwriting profits, a feat that no CEO of any other insurer has come close to matching," Buffett wrote in his annual letter to shareholders.
By these accomplishments, he has added a great many billions of dollars to the value of Berkshire Hathaway, Buffett noted before adding, "Charlie (Munger) would gladly trade me for a second Ajit. Alas, there is none".
Charlie Munger is Berkshire Hathaway's Vice Chairman while Buffett is the Chairman.
Ajit Jain runs Berkshire Hathaway Reinsurance Group, one of the highly profitable business of the conglomerate.
According to the letter, Ajit Jain never exposes Berkshire Hathaway to risks that are inappropriate in relation to its resources.
"Ajit insures risks that no one else has the desire or the capital to take on. His operation combines capacity, speed, decisiveness and most importantly, brains in a manner that is unique in the insurance business," Buffett said.
Citing an example, the legendary investor said that if the insurance industry should experience a USD 250 billion loss from some mega catastrophe, Berkshire Hathaway as a whole would likely record a moderate profit for the year because of its many streams of earnings.
"Concurrently, all other major insurers and reinsurers would be far in the red and some would face insolvency," he noted.
Berkshire Hathaway is a holding company of subsidiaries that are engaged in various fields including freight rail transportation, finance, manufacturing, services and retailing.