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Non-Tech : Berkshire Hathaway Class B -- Ignore unavailable to you. Want to Upgrade?

To: Benkea who wrote (1105)	9/24/1999 4:54:00 PM
From: John Stichnoth	Read Replies (2) \| Respond to of 1652

I am not sure what you are talking about. Unfortunately, I'm not quite sure, either. (gg) And, I don't want to go around spreading rumors. I emphasize that this is old news, and I am just trying to catch up a little. My understanding was that there was a problem with Cologne's Life business, apparently related to some guaranteed investment contracts. I would assume that this is the issue being addressed in the quarterly report, excerpted below, either related to the 1998 provision, or the 1999 provision. If anyone can point me to a fuller explanation of either or both of these events, I'd be grateful. snip------- Premiums earned from General Re's Global life/health reinsurance businesses were $408 million and $287 million for the second quarter of 1999 and 1998, respectively. For the first six months, Global life/health premiums earned were $784 million in 1999 and $594 million in 1998. The growth in premiums earned was primarily attributable to increased business written by Cologne Re's U.S. life/health subsidiary ("CLR") and higher international health premiums. The Global life/health businesses produced a net underwriting loss of $49 million for the second quarter of 1999, compared to a loss of $3 million in the same period of 1998. For the first six months, these businesses produced net underwriting losses of $99 million and $4 million in 1999 and 1998, respectively. The net underwriting losses were primarily attributable to strengthening of CLR's group health reserves as a result of a thorough review of its claim reserves over the first half of 1999. In addition, CLR had unfavorable claims experience in its individual life and health business. The estimated loss provision of $275 million, which was established in 1998 on business underwritten by a London-based managing underwriter for CLR's life/health operation, remained unchanged. ------snip Best, JS