How much did Berkshire Hathaway pay for National Indemnity Company in 1967?

How much did Berkshire Hathaway pay for National Indemnity Company in 1967? The answer is $8.6 million.

On March 9, 1967, Berkshire Hathaway purchased National Indemnity Company and its companion insurer, National Fire & Marine, from Omaha businessman Jack Ringwalt. Berkshire’s reported price for the two-company insurance acquisition was $8.6 million.

The purchase marked Berkshire’s entry into the property-and-casualty insurance business and became a turning point in its history. Insurers collect premiums before they pay claims, allowing them to invest the money held during that interval. Warren Buffett later described this investable “float” as a major engine of Berkshire’s growth.

The question is sometimes simplified to name only National Indemnity, even though the 1967 transaction included National Fire & Marine as well. That detail explains why some accounts describe the purchase as a deal for two sister companies, while still giving the same $8.6 million figure. National Indemnity remains part of Berkshire’s insurance operations.