Billionaire investor Warren Buffett has purchased a stake in a German insurer that last year acquired former Hartford Steam Boiler Inspection and Insurance Co.
Munich Re said Tuesday that Buffett holds just over 3 percent of its outstanding shares.
An ad hoc statement from the company said that Buffett has informed it he now has 3.045 percent of the voting rights in Munich Re. The statement attributed the holding to Buffett rather than to Omaha-based Berkshire Hathaway.
Berkshire Hathaway also owns a major stake in Stamford reinsurer General Re Corp.
Companies are obliged to issue such statements when holdings exceed 3 percent. Munich Re declined to say whether Buffett had owned any shares before bringing his stake above 3 percent.
Munich Re is one of the world’s biggest reinsurance companies, selling backup coverage to other insurers, spreading risk in the event of huge losses. In 2009, Munich Re paid $742 million to buy HSB Group from AIG.
“We’re happy about every investor,” Munich Re spokeswoman Johanna Weber said, without providing further details.
Speculation that Buffett’s investment firm, Berkshire Hathaway, would take a stake in Munich Re had pushed its stock up in the past few days. (AP)
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