US investor Warren Buffett has raised his holding in Munich Re, the world’s leading re-insurance company, a statement to financial markets said on Thursday.
Buffett now owns directly or indirectly more than five percent of the voting rights in Munich Re, after taking options on 1.945 percent of its capital in addition to a previous stake of 3.08 percent owned by his investment fund Berkshire Hathaway.
Shares in the re-insurance group gained 0.23 percent to 110.10 euros in midday trading at Frankfurt’s DAX 30 stock index, which was also up by 0.23 percent.
Buffett also owns 3.2 percent of Swiss Re, a rival reinsurer.
JP Morgan analyst Michael Huttner said Buffett’s interest in such groups made sense because they are “really cheap stocks” now.
Demand for reinsurance by primary insurers is also forecast to rise, Huttner added.
Re-insurance groups provide coverage for primary insurers while also offering direct insurance themselves and investing in financial markets.
Related
The world's biggest reinsurer, Munich Re, said Tuesday that net profit soared 62 percent last year but added that it would probably not do as well in 2010. "I would be very surprised if we can repeat such gains this year," finance director Joerg Schneider told a telephone news conference,…
Feb 2, 2010
In "Munich RE"
Swiss Re, one of the world's biggest insurers reported on Thursday a near doubling of its third-quarter net profit, allowing it to repay crisis funding from US billionaire Warren Buffett. Swiss Re said in a statement that third-quarter net profit reached 618 million dollars (440 million euros), a 97-percent increase…
Nov 4, 2010
In "Berkshire Hathaway"
Warren Buffett believes Japan's devastating earthquake is the kind of extraordinary event that creates a buying opportunity for shares in Japanese companies. Japan, the world's third-largest economy, has been battling to bring an overheating nuclear plant under control after it was battered by the March 11 earthquake and tsunami that…
Mar 21, 2011
In "invest"
Comments
comments
