US INVESTOR Warren Buffett has raised his stake in reinsurer Munich Re to above 10 per cent and plans to further expand the holding, the firm said yesterday.
The world’s biggest reinsurer said in a statement that Buffett’s Berkshire Hathaway had repeated its assurances in a letter that the investment was financial, rather than strategic.
Berkshire also did not aim to influence Munich Re’s management, its direction or the company’s supervisory bodies, Munich Re said.
“It is not intended to significantly change the capital structure of [Munich Re] ...in particular not with regard to the equity/debt ratio or the dividend policy,” Munich Re said in a summary of Buffett’s letter.
Berkshire intends to acquire further voting rights within the next 12 months, Munich Re added.
Reinsurer Berkshire has been steadily raising his holding in its Munich-based rival since crossing the three per cent threshold in January.
Munich Re said it “rejoices at every investor”.