Buffett's Berkshire Is Set to Name Brandon CEO of General Re Unit
9/5/2001
By DEVON SPURGEON
Staff Reporter of THE WALL STREET JOURNAL
Berkshire Hathaway Inc., the conglomerate run by billionaire Warren E. Buffett, is expected Wednesday to name Joseph P. Brandon as chief executive officer of its largest subsidiary, General Re Corp.
Mr. Brandon, 42 years old, was previously the executive vice president of the global reinsurance company. He will become CEO on Oct. 1 and assume the chairmanship next June. He will succeed Ronald E. Ferguson, 59, who is expected to join Berkshire's own board in 2002.
Mr. Ferguson said he told Mr. Buffett in early May that he wished to retire. In addition to the board position, he will enter into a long-term consulting agreement with General Re and Berkshire Hathaway.
"In selecting managers, Berkshire looks for three qualities -- intelligence, energy and integrity," Mr. Buffett said in an interview. "Ron has these qualities in spades."
The management change isn't a response to a turbulent second quarter for General Re, company officials said. The company disclosed a $96 million loss related to a tropical storm near Houston. General Re's results were also hurt by the addition of $137 million to the company's reserves for losses incurred in earlier years.
Since Berkshire purchased General Re in 1998, the reinsurance company has reported a pretax underwriting loss of about $3.2 billion. In an interview, Mr. Brandon said he will focus on continuing to improve underwriting results.
General Re is also expected to name Tad Montross, 45, as president. He will continue to serve as chief underwriting officer. Mr. Ferguson previously held the position of president.
Write to Devon Spurgeon at devon.spurgeon@wsj.com1
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