Buffett reduces shareholding in reinsurance firm Munich Re
Thursday, 10 01 2015, Category: Insurance and Reinsurance, Country: World
Warren Buffett’s Berkshire Hathaway Inc. and National Indemnity Company have reduced their shareholdings in reinsurance firm Munich Re to 9.7%. Previously, the two firms held around 12% of the share capital of Munich Re.
The two companies, directly or indirectly owned by Buffett, have held more than 10% of the shares in Munich Re since October 2010. Buffett said at the time that the investment was being held for the purpose of generating trading profits.
The wider financial press is certain to jump on this as a further sign that Warren Buffett doesn’t like reinsurance anymore. However, this may be a sign of his firm’s intention to diversify further away from insurance and reinsurance businesses, as it is clearly not the profit driver it was five years ago for Berkshire Hathaway’s profits.