Berkshire takes the risk of asbestos AIG at $ 1.65 billion

April 20, 2011, 8: 34 pm EDT by Andrew Frye

(Updates with comment from AIG in the fourth paragraph).

April 20 (Bloomberg)--Warren Buffett's Berkshire Hathaway Inc. will obtain 1.65 billion of American International Group Inc. to assume the risk of political asbestos from the refloated-out insurer.The agreement with National Indemnity of Berkshire based in Omaha, Nebraska will result in a gain before tax deferred $ 200 million this quarter, AIG said today in a statement.Buffett, who oversees the largest reinsurer, to the United States assumed the risks of XL Group Plc and CNA Financial Corp. as carriers were left to simplify or limit liabilities. New York-AIG service seeks to reduce the losses of sold policies years by his unit of the British company Chartis that parent company is preparing to replace the Government with private investment capital.The deal "will help reduce the risk of adverse evolution of U.S. asbestos exposures," society British Chartis Director General Peter Hancock said in the statement. Hancock was named CEO last month after the insurer has been forced to increase the reserves because he underestimated the costs of political claims sold in previous years.AIG, the stock less efficient in the standard & poor 500 Index this year, advanced 33 cents $concluded in trade at the beginning at 8 pm, New York.

-Editors: Dan Kraut, William Ahearn

To contact the reporter on this story: Andrew Frye in New York at the afrye@bloomberg.net

To contact the editor responsible for this story: Dan Kraut to dkraut2@bloomberg.net

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