Warren Buffett’s Berkshire Hathaway is stepping into the municipal bond insurance sector and using its name to charge higher premiums than its rivals, according to Financial Times.

While Ajit Jain, head of the reinsurance unit at Berkshire, has been eyeing the multi-billion dollar bond insurance industry for nearly two decades, he has been reluctant to commit because of the sector’s history of low payments.

The credit crisis of 2007 changed this, and Jain now believes Berkshire can use its triple-A credit rating and excess capital to command a higher premium among investors and borrowers.

“Having talked to some of the issuers and having talked to some of the dealers on (Wall) Street, it became clear to us that if we got into the market with our name, we’d be able to command a premium price,” Jain said.

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