{"id":411952,"date":"2010-03-09T23:54:00","date_gmt":"2010-03-10T04:54:00","guid":{"rendered":"tag:blogger.com,1999:blog-3087194156628161158.post-2827985957453181554"},"modified":"2010-03-10T12:54:53","modified_gmt":"2010-03-10T17:54:53","slug":"cnbc-munich-re-ceo-buffett-stake-backs-our-strategy","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/411952","title":{"rendered":"CNBC: Munich Re CEO: Buffett stake backs our strategy"},"content":{"rendered":"<p><!-- AddThis Button BEGIN --><\/p>\n<p><script type=\"text\/javascript\" src=\"http:\/\/plus.cnbc.com\/stickers\/partners\/cnbcpermalink\/events.js\"><\/script><\/p>\n<div id=\"SWFObject\"><object classid=\"clsid:D27CDB6E-AE6D-11cf-96B8-444553540000\" codebase=\"http:\/\/download.macromedia.com\/pub\/shockwave\/cabs\/flash\/swflash.cab#version=9,0,0,0\" id=\"cnbcplayer\" height=\"370\" width=\"580\"><param name=\"type\" value=\"application\/x-shockwave-flash\"><param name=\"allowfullscreen\" value=\"true\"><param name=\"allowscriptaccess\" value=\"always\"><param name=\"quality\" value=\"best\"><param name=\"bgcolor\" value=\"#000000\"><param name=\"wmode\" value=\"transparent\"><param name=\"salign\" value=\"lt\"><param name=\"movie\" value=\"http:\/\/plus.cnbc.com\/rssvideosearch\/action\/player\/id\/1436817945\/code\/cnbcpermalink\/play\/1\/module\/videoModule\"><embed pluginspage=\"http:\/\/www.macromedia.com\/go\/getflashplayer\" allowfullscreen=\"true\" allowscriptaccess=\"always\" bgcolor=\"#000000\" quality=\"best\" salign=\"lt\" type=\"application\/x-shockwave-flash\" name=\"cnbcplayer\" wmode=\"transparent\" src=\"http:\/\/plus.cnbc.com\/rssvideosearch\/action\/player\/id\/1436817945\/code\/cnbcpermalink\/play\/1\/module\/videoModule\" height=\"370\" width=\"580\"><\/embed><\/object><\/div>\n<p class=\"date\"><span>Airtime: <\/span><span><script>                       document.write(cnbc_video_toDateString(1268217600000));                     <\/script>Wed. Mar. 10 2010 | 11:40 PM ET                   <\/span><\/p>\n<p>Munich Re said it expects to earn a net profit of more than $2.7 billion for its full year despite loss claims from the Chilean earthquake and European wind storm Xynthia. &#8220;The crisis is still on its way,&#8221; CEO Nikolaus Von Bomhard, said Wednesday. &#8220;The risk-free interest rate is very low and that poses a challenge for us.&#8221;<\/p>\n<div class=\"fL w635 lower_hd_section\" style=\"\" archive=\"urn:schemas-microsoft-com:workbench:xslt:archive\">\n<div class=\"fL padL author_info\"><span>By: <\/span>Reuters  |  10 Mar 2010  |  09:34 AM  ET  <script language=\"javascript\"> \t\tfunction UpdateTimeStamp(pdt) { \t\t\tvar n = document.getElementById(\"udtD\"); \t\t\tif(pdt != '' && n && window.DateTime) { \t\t\t\tvar dt = new DateTime(); \t\t\t\tpdt = dt.T2D(pdt); \t\t\t\tif(dt.GetTZ(pdt)) {n.innerHTML = dt.D2S(pdt,((''.toLowerCase()=='false')?false:true));} \t\t\t} \t\t} \t\tUpdateTimeStamp('634038284700000000');<\/script><\/div>\n<\/div>\n<p><script type=\"text\/javascript\">setDefault('cnbc_textbody');<\/script><\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>MUNICH (Reuters) &#8211; Munich Re  sees star investor Warren Buffett&#8217;s stake in the reinsurer as evidence that he backs its long-term strategy aimed at creating stability, Munich Re&#8217;s chief executive said on Wednesday.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>&#8220;He would not have bought in if he didn&#8217;t think our strategy good,&#8221; Nikolaus von Bomhard told a news conference, referring to Buffett&#8217;s voting stake in the world&#8217;s biggest reinsurer, last reported to be at more than 5 percent.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>Buffett also holds options on a further 1.9 percent stake that expire on Thursday, but would be required to disclose the change in his holding if the stake rises above 10 percent or falls below 5 percent.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>Analysts have said they see Buffett&#8217;s stakeholding as financial rather than strategic, a view von Bomhard corroborated by noting that Buffett does not traditionally seek to influence the management strategy of the companies he holds.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>&#8220;He doesn&#8217;t buy what he doesn&#8217;t understand,&#8221; von Bomhard added.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>Buffett is already a global player in reinsurance through his Berkshire Hathaway Inc and his 3 percent stake in the world&#8217;s second biggest reinsurer, Swiss Re <<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>Munich Re on Wednesday said it was targeting net profit of 2 billion euros ($2.7 billion) this year, and further improvement in 2011, as it seeks to reduce the volatility of earnings.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>Reinsurers are hoping investors will see the advantage of strategies aimed safe and stable returns following the financial market ructions of the past two years.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>The world&#8217;s fourth-biggest reinsurer, Hannover Re following a similar strategy and is due to release 2009 results on Thursday.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>The presence of Buffett, a traditional proponent of long-term investing, would help highlight Munich Re&#8217;s efforts, chief financial officer Joerg Schneider said.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>&#8220;He is ideal for us,&#8221; he told Reuters.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>Munich Re&#8217;s 2010 target is down from the more than 2.5 billion euros it earned in 2009, when it saw a windfall from no big losses on natural disasters and a rebound in financial markets.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>The company&#8217;s share has risen by 7.5 percent since the start of the year, outpacing a 2 percent rise in the Stoxx European insurance index <<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>It was trading up 0.4 percent at 116.80 euros by 1429 GMT, in line with the index.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>(Reporting by Jonathan Gould and Christian Kraemer)<\/p>\n<p class=\"textBodyBlack\"><a name=\"comments\"><span style=\"font-weight: bold;\">Share Investor Links<\/span><\/a><a name=\"comments\"><\/a><\/p>\n<p><a href=\"http:\/\/www.shareinvestorblog.com\/\">Share Investor Blog<\/a> &#8211; Stockmarket &amp; Business commentary<br \/>\n<br \/>Discuss this topic @<a href=\"http:\/\/www.shareinvestorforum.com\/\"> Share Investor Forum<\/a> &#8211; 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Mar. 10 2010 | 11:40 PM ET Munich Re said it expects to earn a net profit of more than $2.7 billion for its full year despite loss claims from the Chilean earthquake and European wind storm Xynthia. &#8220;The crisis is still on its way,&#8221; CEO Nikolaus Von Bomhard, said Wednesday. &#8220;The risk-free [&hellip;]<\/p>\n","protected":false},"author":833,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-411952","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/411952","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/833"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=411952"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/411952\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=411952"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=411952"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=411952"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}