Berkshire Hathaway Pauses Structured Settlement Sales

John Darer
October 22, 2022

Applies to NEW Structured Settlement Sales After Year End

Berkshire Hathaway has been one of the leading structured settlement annuity issuers for over a decade, particularly for long haul structured settlement market segment. The company has a sterling reputation to go along with its superior company ratings and financial strength.

At or about the end of 2022, Berkshire Hathaway will hit a soft pause on new structured settlement annuity sales. Berkshire Hathaway’s decision comes at a time that its competitors are seeing significant increases in business activity with increases in yields of underlying investments not seen for many years.

What do you mean by a soft pause on new Berkshire Hathaway structured settlement annuity sales?

While Berkshire Hathaway will still write structured settlement annuities it will be most attractive to those funding long term needs or obligations, who place a premium on balance sheet and superior ratings over price.

Berkshire Hathaway Previously Paused and Re-Entered the Structured Settlement Market

It should be noted that this has actually been Berkshire’s second foray in the structured settlement annuity market, having re-entered the market in 2011, following a 10 year hiatus. The company had previously written structured settlements from the 1980s to 2001. Berkshire will continue to be a supporter of structured settlements despite the pause.

Warren Buffett Support for Structured Settlements

Warren Buffett is a staunch supporter of structured settlements. At the 2017 Berkshire Hathaway Annual Meeting Warren Buffett underscored Berkshire’s support for structured settlements, saying that “more people want to put their structured settlements with Berkshire Hathaway than anyone else”, Buffett estimated at the time that Berkshire took in about $30 million every week in structured settlement premium. Watch video here

4structures.com LLC has placed structured settlement annuities issued by Berkshire Hathaway operating subsidiaries Berkshire Hathaway Life Insurance Company of Nebraska and First Berkshire Hathaway LIfe (on New York cases) and periodic payment reinsurance through National Indemnity Company.

Berkshire Hathaway Structured Settlement Innovation

Berkshire Hathaway led the way with its innovative humanistic reactive structured settlement commutation rider (since duplicated by one other structured settlement annuity issuer).

Berkshire Hathaway Hardship Exchange Innovative and Prescient

It has also offered a competitive Hardship Exchange for annuitants that need liquidity. While it was unpopular with some settlement consultants it turns out to be a prescient move, given the potential threats against annuity issuers regarding enforcement of anti-assignment provisions. See Lujerio Cordero v. Transamerica Annuity Service Corporation, et al, No. 21-11340 (11th Cir. 2022)

If you have a structured settlement annuity issued by any of the Berkshire Hathaway companies, you may be approached by unethical predators from the structured settlement secondary market with fake news about Berkshire Hathaway who seek to unsettle gullible Berkshire Hathaway annuitants for pennies on the dollar offers. Similar approaches were made to annuitants of Liberty Life Assurance Company of Boston, Allstate and John Hancock when those companies left the market. Don’t be gullible. If you are approached with fake news about Berkhire Hathaway, be sure to save any written approach and log all calls and contacts. Don’t give out your contract details.

Important Numbers

Berkshire Hathaway Structured Settlement Customer Service 402-916-3100

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Berkshire Hathaway Pauses Structured Settlement Sales

Applies to NEW Structured Settlement Sales After Year End

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