In one of the most anticlimactic announcements of the year,Berkshire Hathaway says its new commercial E&S unit hascommenced operations.

Berkshire Hathaway Specialty Insurance now writes property,casualty, professional and executive liability insurance andprograms in the U.S., says Berkshire.

“It's official: We are moving into commercial insurance in asubstantial way, and we are here to stay,” says Warren Buffett, CEOof Berkshire Hathaway, in a statement. “With our provenunderwriting discipline and financial strength, along with astellar management team, Berkshire Hathaway Specialty Insurance isa welcome solution for customers seeking large-scale property andcasualty capacity for the long term.”

Policies will be underwritten on the non-admitted paper ofBerkshire's National Fire & Marine Insurance Co. BHSI also hasaccess to National Indemnity, an admitted Berkshire subsidiary,when needed.

Peter Eastwood will lead the new unit as its president. Eastwood recently defected from AIG with fellow executivesDavid Bresnahan, Sanjay Godhwani and David Fields to join Buffett'sBerkshire.

Berkshire says Bresnahan is executive vice president ofcasualty, health, professional and executive liability; Godhwaniis executive vice president of property and programs; Fieldsis executive vice president of underwriting, actuarial,finance and reinsurance; and David Crowe rounds out the leadershipas senior vice president of claims.

At a recent industry conference Eastwood said the new unit willfocus to start on E&S lines, catastrophe-exposed propertyespecially, and has already written a “good amount of business.”BHSI has also received positive responses from brokers. The newunit has several dozen new employees, and will continue to hire, headded.