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Berkshire Executive Faults Wall Street’s ‘Disposable Reinsurers’

Berkshire Hathaway Inc.’s Franklin “Tad” Montross faulted Wall Street and private-equity firms for creating rival sellers of reinsurance that he said may not have the backing of their founders in three to five years.

“The investment term is obviously out of sync with the duration of the liabilities,” Montross, chief executive officer of Berkshire’s General Reinsurance Corp., said in a statement on the unit’s website and dated this month. “This mismatch is unlikely to play out well 10 or 20 years down the road.”