2005: What does Buffett think of AIG and Converium?

AUDIENCE MEMBER: I’m Christian Tukenberger (PH) from Switzerland, Europe.

What do you think of the two insurance — reinsurance, AIG and Converium, from Switzerland? Thank you.

WARREN BUFFETT: Well, I’m going to give you a chance at a second question because I don’t really think I should comment on AIG.

There’s, you know, they have said that they’re going to have their 10-K. They hope to have it by, I guess, today.

I haven’t received any late word whether it’s been filed but they have — there’ll be more disclosure on the situation at AIG, and I really don’t know anything about what will be in that statement, and I’ll just — I’ll wait to read it. I’ll read it with interest. But I — I have no particular insights on that.

Converium has had troubles in the United States, has been announced, but they also raised additional money. But again, I don’t really have any specific commentary on those two companies.

Charlie?

CHARLIE MUNGER: Well, I’ll be bold enough to make one comment about AIG. (Laughter)

I think whatever comes along, people are going to find that a lot that was very right was done over the years by AIG. There’s a lot of ability in that place.

WARREN BUFFETT: Oh yeah. Extraordinary. I mean, Hank Greenberg was — he was the number one man in insurance. I mean, he developed an extraordinary company, in his lifetime.

It wasn’t that much when it was handed to him. And he became the most important factor, I would say, by some margin, in the property-casualty business.

But in terms of evaluating where it stands now and what will be revealed when the 10-K comes out, I just have no idea.