Posted On: Jan. 29, 2010 11:14 AM CENTRAL
MUNICH—Warren Buffett’s investment in Munich Reinsurance Co. includes options that could push his stake in the German reinsurer to more than 5%.
Munich Re earlier this week revealed that Mr. Buffett, the billionaire investor who controls Berkshire Hathaway Inc., had increased his direct and indirect stake in Munich Re. In a statement released Thursday, Munich Re said Berkshire’s stake in the reinsurer is 3.084%, which is slightly higher than it previously announced. In addition, Munich Re revealed that Mr. Buffett holds financial instruments granting him the right to purchase another 1.945% in Munich Re and bring its ownership to 5.029%.
The exercise date on those options is March 11, according to Munich Re.
The options add to Berkshire Hathaway’s already significant investment in the reinsurance market. The Omaha, Neb.-based investment vehicle’s various reinsurance holdings, including General Re Corp. and National Indemnity Co., already rank it as the world’s third-largest reinsurer, according to the latest rankings by Business Insurance.
In addition, to its shares and options in Munich Re, the world’s largest reinsurer, Berkshire Hathaway holds a stake in Zurich-based Swiss Reinsurance Co., the second-largest reinsurer, and an option to increase its stake in the company to about 25%.
Share Investor Blog – Stockmarket & Business commentary
Share Investor New Zealand Business News– Get more business news
Discuss this topic @ Share Investor Forum – Register free
Share Investor’s Daily Forex Updates
Recommended Amazon Reading
 |
The Essays of Warren Buffett: Lessons for Corporate America, Second Edition by Warren E. Buffett Buy new: $25.86 / Used from: $24.96 Usually ships in 24 hours |
 |
Warren Buffett and the Interpretation of Financial Statements: The Search for the Company with a Durable Competitive Advantage by Mary Buffett Buy new: $16.47 / Used from: $16.21 Usually ships in 24 hours |
