Berkshire Hathaway CEO Warren Buffett said he expects insurance industry profit margins to decline significantly in 2008. He noted that insurers are more exposed to risk and that prices are dropping. "If the winds roar and the earth trembles, results could be far worse. So be prepared for lower insurance earnings for the next few years," he wrote in a letter to shareholders. The company reported an 18% decline in fourth-quarter profits.

Related Summaries