Buffett cuts US cat business

Warren Buffett, chairman and chief executive of Berkshire Hathaway has cut most of the company’s catastrophe insurance business in the US, stating a decrease in interest rates as the reason.

Buffett told cable television network CNBC: "In the United States we have almost eliminated our catastrophe insurance business. The rates came down dramatically, and we do not regard the exposure as having come down dramatically," he said.

The industry leader also said he did not believe the industry to be in fear of another financial crisis similar to 2008, and said that a 50 percent decline in global stock markets would surprise him a lot.