According to The Irish Times, Warren Buffett’s Berkshire Hathaway has added an additional €40 million into its insurance company to bolster its capital levels.
The funding was provided back in February and by way of new shares and brought its share capital to €176 million.
The publication also noted that the Nebraska-based parent company put €20 million into the Irish business in 2020, also via new shares.
This funding was to “support the faster than expected growth of the business, including the associated start-up costs”, it explained in its financial statements note.
Initially, the Dublin operation was capitalised to the tune of €116 million as part of its authorisation process before it began trading in 2019, to meet “forecast regulatory capital requirements to December 2022, including the funding of initial net losses associated with the start-up of the new business”.
Due to COVID-19, all of its offices are currently operating on a working from home basis and the board has assessed an “exposure” of €10 million from the pandemic.
The directors report said: “The board have reassessed the various risks which have been increased by the pandemic and are confident that the business is sufficiently robust to withstand all impacts.”
The company reported its gross written premiums was at €318.4 million, up from €72.7 million in 2019. Its average loss ratio after reinsurance was 92%, which the accounts state was in line with expectations.
When investment and exchange losses are included, the company made a loss before tax of €6.3 million, up from €2.7 million in 2019. An overseas tax charge of €2.1 million brought total losses for the year to €8.4 million.