Berkshire Hathaway Assurance Corp., the newest bond insurer in the municipal bond market, was also the highest-earning of its peers in the first quarter, using a strategy of writing credit default swap contracts to provide secondary market insurance, earning about $300 million in premiums in the quarter.

BHAC's parent, Berkshire Hathaway Inc., said in first-quarter financial statements that BHAC had earned about $400 million in total premiums during the quarter. The total was notable for its size, as BHAC was formed in December and spent much of the quarter getting licenses from state insurance departments and ratings from the rating agencies.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.