WILKES-BARRE — Billionaire Warren Buffett released his annual letter to Berkshire Hathaway shareholders on Saturday and Wilkes-Barre was prominently mentioned in it.
“Close your eyes for a moment and try to envision a locale that might spawn a dynamic (property/casualty) insurer,” Buffett wrote. “New York? London? Silicon Valley?
“How about Wilkes-Barre?”
Buffett went on to say that late in 2012, Ajit Jain, “the invaluable manager of our insurance operations,” called to tell Buffett that he was buying a tiny company — GUARD Insurance Group — in that small Pennsylvania city (Wilkes-Barre) for $221 million (roughly its net worth at the time).
He added that Sy Foguel, GUARD’s CEO, was going to be a star at Berkshire.
“Both GUARD and Sy were new names to me,” Buffett said. “Bingo and bingo: In 2019, GUARD had premium volume of $1.9 billion, up 379% since 2012, and also delivered a satisfactory underwriting profit.”
Buffet further stated that since joining Berkshire, Foguel has led the company into both new products and new regions of the country and has increased GUARD’s float by 265%.
“In 1967, Omaha (Nebraska) seemed an unlikely launching pad for a P/C giant,” Buffett wrote. “Wilkes-Barre may well deliver a similar surprise.”
‘Pleased’ with spotlight
Elizabeth Hartman, a spokeswoman for Berkshire Hathaway GUARD Insurance Companies, said: “We are pleased that GUARD’s success puts a positive spotlight on the city of Wilkes-Barre.”
Hartman also said the company’s move to 39 Public Square is complete.
“Within the past month, we have relocated the remaining departments slated to occupy the building,” Hartman said. “We are still completing our conferencing center on the first floor.”
Hartman said the company has just crossed the 1,000 employee threshold, with just over 800 located in Wilkes-Barre.
The company’s operations include the GUARD Tower at 39 Public Square and offices at 44 West Market St.
