Buffett: Worst-case scenario for auto insurance biz would be to nationalize it

Question: What's the worst-case scenario you could imagine with respect to your insurance business?

Munger: Very worst is losing several billions of dollars pre-tax. I think we have a marvelous insurance sytem. Warren?

Buffett: It is a fabulous business. If we had a $100B catastrophe - we would probably pay 3-4% of that. I think the worst situation that could occur is that we ran into so much inflation that people got very unhappy with anything they had to buy in their daily life - certainly like auto insurance - and if they expressed their outrage and said let's nationalize the whole thing. That would be a huge asset that would disappear. I don't know that that's a high probability - but if you're asking me to look at worst cases. Similar concerns for the utilities business.