Berkshire Hathaway's insurance subsidiaries lost $3.4 billion from the 2005 U.S. hurricane season.
In this year's letter to shareholders, Warren Buffett said it remained an open question whether "atmospheric, oceanic or other causal factors have dramatically changed the frequency or intensity of hurricanes" -- but after the worst quarterly losses in industry history it was prudent to limit exposure, the Financial Times reported.
"Our ignorance means we must follow the course prescribed by Pascal in his famous wager about the existence of God," Buffett wrote to shareholders. "Since he didn't know the answer, his personal gain/loss ratio dictated an affirmative conclusion."
The letter also said board directors have chosen which of three short-listed managers would replace Buffett if he died tomorrow, but declined to identify which of them it was, the newspaper said.
Buffett said Berkshire had a "decent" year in 2005, thanks in part to greater availability of attractive acquisition candidates.
© Copyright 2006 by United Press International
