Buffett takes stake in world’s biggest reinsurer
* Move follows market rumours on Friday
* Shares turn positive on news
(Adds details and background)
FRANKFURT, Jan 26 (Reuters) – U.S. investor Warren Buffett has added a big stake in Munich Re (MUVGn.DE) to his stable of insurance holdings, boosting the company’s shares on Tuesday.
The world’s biggest reinsurer said in a statement Buffett’s shareholding rose above the threshold of 3 percent on Jan. 18 and amounted to 3.045 percent of voting rights on that date.
Munich Re’s share turned positive on the news, rising by as much as 2 percent, before paring gains to be up 0.4 percent at 108.90 euros by 0855 GMT. The DJ Stoxx index of European insurance shares fell 0.8 percent .SXIP.
Rumours that Buffett was buying stock had boosted Munich Re’s share on Friday.
Buffett is already a major player in the world’s insurance market with his Berkshire Hathaway Inc (BRKa.N)(BRKb.N) unit, the world’s third-biggest reinsurer.
Berkshire also pumped 3 billion Swiss francs ($2.88 billion) into Swiss Re (RUKN.VX) at the height of the global financial crisis after the Swiss company wrote off double that amount in toxic assets. [ID:nL5719257]
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