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Last month, it was announced that insurance giant AIG would pay Berkshire Hathaway $10 billion in a blockbuster deal in which Berkshire would take on many long-term risks on U.S. commercial insurance policies that AIG has already written. The reinsurance transaction would cover "long-tail" exposures, which are liabilities that emerge long after policies are issued, from excess casualty, workers compensation, and other AIG policies. McKool Smith principals Robin Cohen and Elizabeth Sherwin recently published an article in Law360 titled “What AIG Deal With Berkshire Means For Policyholders,” which discusses and analyzes the implications of the AIG and Berkshire Hathaway deal, and provides an overview of Warren Buffet's float practice to delay paying reinsurance payment obligations in an effort to line investors’ pockets.

The full article can be found here.

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