Will Berkshire buy Employers Re? (Late Breaking News).(Employers Reinsurance Corp. may be sold)

National Underwriter Property & Casualty-Risk & Benefits Management, November, 2002 by Howard, Lisa S.

Despite the flurry of press reports that Berkshire Hathaway has made a bid to buy Employers Reinsurance Corp., such a move would be surprising, analysts contend. "We're not going to sit here and say [the deal] can't happen, but we'd be surprised if it did," said Steve Dreyer, man aging director of Standard & Poor's in New York.

"The only way I see this deal happening is on price alone, and it is an unbelievable steal," he added. The question is whether such an acquisition would bring any value outside of scale to Berkshire's existing Gen Re operation, said Fred Loeloff, director of Standard & Poor's in New York. A representative for Employers Re said the company does not comment on market rumors. Sources agree that it is logical the two companies have...

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