Aon Risk Solutions has signed a deal with Warren Buffett’s Berkshire Hathaway International Insurance Ltd. to launch a unique insurance sidecar that will enable the broking giant to extend Berkshire’s capacity to Lloyd’s clients.The coinsurance deal “is globally available across all industry segments” including P&C, power and construction, marine and energy and financial/executive liability. The deal will allow Aon to draw on Berkshire Hathaway’s AA+ rated capacity for “all eligible business placed by Aon Risk Solutions where the Lloyd’s market participates,” a statement from Aon said.The deal is the first of its kind in the insurance industry and will enable Aon to deploy capacity on behalf of Berkshire Hathaway, in what is believed to be a quota share arrangement.According to a report in the Insurance Insider, Warren Buffett’s reinsurer will take a 7.5 percent share of all of all of Aon’s subscription business running through Lloyd’s. The sidecar style deal is said to involve Aon brokered business with a retail premium in excess of $2.5 billion.Commenting on the deal, Steve McGill, group president of Aon and chairman and CEO of Aon Risk Solutions said, “This landmark solution provides a unique way for them to access high quality capacity efficiently. No other firm has been able to deliver a solution of this scale to their retail clients across all industry segments on a full follow basis. We are proud to be able to offer our clients unprecedented access to the financial strength of Berkshire Hathaway through this transaction.”The solution will be managed by Aon Underwriting Managers — Aon’s Managing General Agent business, which has delegated authority to grant cover on behalf of Berkshire Hathaway.The new sidecar appears to be more permanent in nature than traditional, opportunistic structures, and will likely be regarded as competition by those reinsurers active at Lloyd’s.