2008: How is Cologne Re's integration going?

AUDIENCE MEMBER: Good morning, Warren. Good morning, Charlie. My name is George Iscis (PH) from Cologne, Germany.

My question: how is the operational integration of the Cologne Re progressing? Thank you very much.

WARREN BUFFETT: Cologne Re, for those of you who are not familiar with it, is a 95 percent-owned subsidiary of General Re, of which Berkshire Hathaway owns 100 percent.

And Cologne Re, I believe, is the oldest reinsurance company in the world. It’s done a magnificent job for us as part of, first Gen Re, and then Berkshire Hathaway.

And we have a process in place that will, before too long, result in us owning a hundred percent of Cologne.

One difference, then — there won’t be any difference in operation. It runs magnificently the way it’s being run. But at that point — up until this point, they have run their own investment portfolio. That portfolio and the equity portfolio of GEICO are the only two that I don’t run.

But when we own a hundred percent of Cologne, then I will take the responsibility for Cologne’s investment portfolio. Otherwise it would be hard to improve on the operation of the management of Cologne.

So there will be — you will not see any other changes except we will consolidate in 100 percent of the earnings of Cologne rather than 95 percent.