BOSTON—Berkshire Hathaway Specialty Insurance hasundeniably caused a stir in the insurance industry due to the nameit carries, and the name of its ultimate owner, as well as therecognizable names of a foursome of its highest executives, havingdefected together from American International Group.

However, in speaking with BHSI President Peter Eastwood, the6-month-old BHSI plans an aggressive yet responsible entry intotargeted lines of business—diving in rather than doing a“cannonball” into the sea of the marketplace. Nevertheless, bothcreate waves.

From his office on the highest floor of the insurer's StateStreet, Boston office, Eastwood—not long ago the head of AIG'sP&C business in the Americas—tells PC360 that whileit's true BHSI was “instantly relevant from a risk takingstand-point” due to the capital base of the Berkshire Hathawaygroup of insurance companies—owned by billionaire Warren Buffett—heand his team do not take that for granted, and are workinghard to win the support of brokers and customers.

“There are many advantages that we have being part of theBerkshire Hathaway family—the capital base and the brandrecognition among them—but we're building a business for the longterm so we're going to be very thoughtful about how we build thebusiness,” he says, a breath-taking view of Boston Harbor behindhim. “There are a number of measurements to success, but none ismore paramount than profitability. We have profitabilityobjectives and we're guided by them as we make decisions.”

BHSI inked its first account on day two of week three and has“exceeded initial expectations,” in many facets of the business,Eastwood says reservedly. He wouldn't get into specifics about theamount of business BHSI has written but offers, “We are verypleased. Six months in we are seeing opportunities to be inbusinesses we didn't necessarily think about at the start.”

Again, Eastwood is giving away no secrets pertaining to aspecific line BHSI is eyeing.

Currently, BHSI is pursuing property, casualty, executive andprofessional, healthcare medical professional, and programbusiness—with Sanjay Godhwani heading property and programs andDavid Bresnahan taking the three other lines. Godhwani, Bresnahanand P&C executive David Fields each left AIG at the same timefor BHSI.

The foursome set up shop as BHSI—without an official office or alandline—almost immediately after their resignations, Eastwoodsays. For a short time they worked from a Boston office of anotherBerkshire subsidiary. Eastwood says he wanted to establish animmediate sense of “permanence,” and began hiring in othercities—though they too had no office. The company acquired theState Street office quickly, furnishing and outfitting it withnecessary equipment in short order to keep with the“permanence” goal.

“We've had people come into the office and say, 'I can'tbelieve what you're already doing.' That's the goal. We're up andrunning and writing business,” Eastwood pronounces.

BHSI now has 75 employees in 5 offices, Boston being its largestthough it is by no means expansive.

“With everyone we bring to the team, we want them to enter withkey attributes—what I refer to as capabilities andcharacter. I want people on our team who are not only going tomake smart decisions but are going to go about our business in away that leaves our business partners feeling positive aboutBerkshire Hathaway. These people are furtheroperationalizing the Berkshire Hathaway P&C platform and brand,and developing and expanding relationships with broker partners andcustomers,” says Eastwood.

BHSI recently hired Lori Spoon Rafkin as its senior vicepresident of customer and broker engagement. “We wanted someone onthe team getting up every day and thinking about our engagementwith brokers and customers, and setting common goals withthose partners. Lori's done a terrific job—and we had highexpectations,” Eastwood explains.

BHSI is providing “solution-oriented” products to whatEastwood calls the “upper-middle market” through to largecorporates. The company has another ability most start-upslack—admitted paper. Policies are will be underwritten on thenon-admitted paper of Berkshire's National Fire & MarineInsurance Co. but BHSI also has access to National Indemnity, anadmitted Berkshire subsidiary, when needed.

“To date we are running as an excess and surplus company becausethis space is very customer friendly due to the freedom of rate andform you are afforded; you can also execute with relative ease,”says Eastwood. BHSI is going through the process of gettingadmitted forms and rates filed and plans to enter certain parts ofthe admitted market ”very soon,” offers Eastwood, adding theinsurer would like to begin offering admitted directors' andofficers' solutions.

When asked if BHSI could become an acquirer of other insurancecompanies, Eastwood says the company's plan is to continue to groworganically, but “acquisitions can be a part of our strategicplan.”

“When there are opportunities, we'll be thoughtful inlooking at them.”