Buffett's Berkshire Hathaway buys 3.7% of IAG, agrees 20% 'quota share' in "terrifically strong company"

Tue, 16 Jun 2015

By Jonathan Underhill June 16 (BusinessDesk) - Berkshire Hathaway, Warren Buffett's investment vehicle, has acquired 3.7 percent of Insurance Australia Group in an A$500 million placement as part of an agreement that will see the US firm take 20 percent of IAG's premiums and pay 20 percent of the insurer's claims. The deal marks Buffett's first investment in an Australian company although Berkshire's reinsurance relationship with IAG, the biggest insurer in Australia and New Zealand, dates back to 2000. Berkshire will buy 89.8 million new...

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