Howard Hughes Chairman Bill Ackman to Discuss Acquisition of Insurance Company

Bill Ackman, Chairman of Howard Hughes Holdings, and Chief Investment Officer Ryan Israel will discuss the company's plan to acquire an insurance company at the firm's annual shareholder meeting. The meeting will take place on April 27, 2023.

Howard Hughes Holdings (HHH) is poised for significant transformation as it aims to acquire an insurance company, according to recent developments. Chairman Bill Ackman and Chief Investment Officer Ryan Israel will discuss this strategic move at the company's annual shareholder meeting scheduled for September 30, 2025. This acquisition is part of HHH's broader plan to diversify its holdings and create a modern-day version of Berkshire Hathaway.

The transformation plan involves acquiring a well-managed insurance business that can generate cash through premiums, which can then be invested to generate attractive returns on equity. The insurance company will operate with low leverage, with premiums equal to 20% to 40% of equity in any one year. The float from insurance premiums will be invested in very low-risk assets, such as short-term U.S. treasuries. Meanwhile, the equity of the insurance operation will be invested in high-quality common stocks managed by Pershing Square Capital Management [1].

This acquisition is a departure from the traditional insurance company model, which typically focuses on maximizing insurer profitability. Instead, Pershing Square aims to leverage its investment expertise to manage the insurance company's equity portfolio. This strategy allows HHH to grow without relying on equity capital, as the insurance company will generate cash that can be reinvested [1].

Bill Ackman has indicated that the acquisition process is ongoing, with several potential insurance company acquisition opportunities currently under review. The goal is to announce a transaction by the fall of 2025, with a preference for completing it by September 30, the date of HHH's annual general meeting [2].

The acquisition of an insurance company is expected to accelerate HHH's transformation into a diversified holding company. This shift aligns with the vision of transforming HHH into a company similar to Berkshire Hathaway, which began as a merger between two textile companies and later diversified into various industries under Warren Buffett's leadership [1].

References:

[1] https://financialfreedomisajourney.com/howard-hughes-holdings-is-being-transformed-into-a-diversified-holding-company-2025-8-12/
[2] https://seekingalpha.com/news/4486555-bill-ackman-to-discuss-howard-hughes-plans-to-buy-an-insurance-company