Interesting question as usual, Seven. This one would require a bit more context for me to be 100% sure of the meaning, but I believe I understand. Berkshire Hathaway Assurance insures municipal bonds. It sounds like the original bond premium would have been 1% of the value of the bond, while Berkshire, which insures bond payment in case the primary issuer of the bond defaults, has a premium which amounts to 2% of the bond value. I assume that this extra amount is due to the secondary nature of the insurance as well as Berkshire's rock-solid reputation (it's hard to even imagine their defaulting!). I can't be 100% sure for a few reasons. Bond premium and insurance premium can mean different things, and the secondary nature of the arrangement makes it a bit difficult for me to parse out just what exactly's being said. The important thing is the Berkshire, by getting a 2% premium on an asset that sells on the market for 1%, is getting a pretty sweet value, as is typical for anything which has been touched by the Oracle of Omaha.