Which insurance company did Berkshire Hathaway acquire in 1967?

Berkshire Hathaway acquired National Indemnity Company in 1967. The purchase marked Berkshire’s decisive move from its struggling textile roots into insurance, the business that would eventually supply much of its investment capital.

National Indemnity was founded in 1940 by Jack Dabney Ringwalt and was based in Omaha, Nebraska. Berkshire bought it in March 1967 for $8.6 million, making it the first major acquisition under Warren Buffett’s control. The company specialized in unusual and high-risk forms of commercial insurance, including coverage that traditional insurers often avoided.

The acquisition mattered because insurers collect premiums before paying many claims, creating “float” that can be invested in the meantime. Buffett later used Berkshire’s growing insurance operations—including GEICO, General Re and others—as a financial engine for buying businesses and securities. A common mix-up is GEICO: Berkshire first invested in GEICO in 1976 and did not acquire it outright until later, while National Indemnity was the earlier 1967 acquisition.