Berkshire 2026 shareholder letter: Risk management is a core work, our insurance business has become a global leading force.

Abel stated: Risk management is the core work of Berkshire. The CEO also serves as the Chief Risk Officer, which is the most important responsibility. Any contract may face legal disputes, and new insurance products are particularly risky. Often, we have to set premium prices now, even though the extent of related losses may not be clear until many years later. Accurately pricing insurance risks is crucial, and if the pricing is unreasonable, we will choose to abandon it. This is the core principle of our insurance business, and Ajit's ability in this area is unrivaled. Therefore, our insurance business has become a leading global force, able to take on risks that other institutions cannot, and pay out insurance claims without hesitation. Our unparalleled financial strength allows us to retain underwriting risks, retain all economic benefits for shareholders, and not dilute profits by purchasing reinsurance.