Oscar Health signed a reinsurance deal with a Berkshire Hathaway subsidiary, the health insurance startup shared in a second-quarter earnings statement cited by Forbes contributor Bruce Japsen.
The agreement, signed with Berkshire Hathaway's National Indemnity reinsurance subsidiary, may signify Oscar is looking to expand its individual and small group markets, according to Mr. Japsen.
Oscar CFO Sid Sankaran said in the earnings statement: "Under the partnership, which is being reviewed by regulators, Oscar cedes 50 percent of its risk on the portfolio to NICO. This will allow Oscar additional capital flexibility to fuel our growth and further refine our already best-in-class technology stack."
The news accompanies a $128 million underwriting profit the insurer posted in the second quarter of fiscal year 2019. That's compared to a $141 million underwriting profit in the same period last year.