Buffett calls likely successor Ajit Jain a 'superstar'

New York: Reiterating the confidence on the Indian-origin Ajit Jain - long rumoured to be the successor of the legendary investor at Berkshire Hathaway, Warren Buffet describes Jain as a "superstar". Buffett said that Jain, Head of Berkshire's reinsurance operations, is known worldwide as the man to call when something both very large and unusual needs to be insured.

"A hugely important event in Berkshire's history occurred on a Saturday in 1985. Ajit Jain came into our office in Omaha - and I immediately knew we had found a superstar," he wrote in his annual letter to shareholders.

Jain was given charge of then small and struggling reinsurance operations. "If Charlie (Buffett's partner), I and Ajit are ever in a sinking boat - and you can only save one of us - swim to Ajit (Jain)," the Berkshire chairman said.

According to Buffett, Jain writes billion-dollar limits - and then keeps every dime of the risk instead of laying it off with other insurers. Citing an example, Buffett said that three years ago Jain took over huge liabilities from British banking major Lloyds, allowing it to clean up its relationship with 27,972 participants who had written problem-ridden policies.

"The premium for that single contract was $7.1 billion. During 2009, he negotiated a life reinsurance contract that could produce $50 billion of premium for us over the next 50 or so years," Buffett noted.