" Warren Buffett’s Berkshire Hathaway
BRK.B

-2.03%
is the state’s third-largest property and casualty insurer, but less than 1% of its premiums come from homeowners insurance. Wildfire losses haven’t been material enough to rate a mention in its insurance results since 2020.

“Climate change increases risk,” Buffett told shareholders at Berkshire’s May 2024 annual meeting. “In the end, it makes our business bigger over time.”

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Rising risk means a rising need for insurance coverage. “If there was no risk, there would have been no insurance business,” said Buffett.

Most of the insurer’s contracted liabilities, especially in reinsurance, are limited to a year, pointed out Berkshire’s insurance chief Ajit Jain. Then it can reprice or get out of the business altogether.

“Climate change, much like inflation, done right can be a friend of the risk bearer,” Jain said." barrons.com - Pacific palisades fire insurance stocks california