Master Achievement

U.S. investor Warren Buffett holds just over 3 percent of leading reinsurer Munich Re AG, the German company said Tuesday.  An ad hoc statement from the company said that Buffett has informed it he now has 3.045 percent of the voting rights in Munich Re. The statement attributed the holding to Buffett rather than to Omaha-based Berkshire Hathaway.

Companies are obliged to issue such statements when holdings exceed 3 percent. Munich Re declined to say whether Buffett had owned any shares before bringing his stake above 3 percent.  Munich Re is one of the world’s biggest reinsurance companies, selling backup coverage to other insurers, spreading risk in the event of huge losses.

Natural catastrophe losses were far lower in 2009 than in 2008 due to the absence on the whole of major catastrophes and a very benign North Atlantic hurricane season.  However, the total number of destructive natural hazard events was above the long-term average, 850 being recorded in all.  Consequently, despite the lack of really disastrous events, there were substantial economic losses of US$ 50bn and insured losses amounted to US$ 22bn compared with economic losses of US$ 200bn and insured losses of US$ 50bn in the previous year.

Billionaire investor Buffett has been a shareholder in Munich Re since at least 2008.  Munich Re Chief Executive Officer Nikolaus von Bomhard told shareholders at the annual meeting in Munich that year that he expected Buffett to remain a shareholder in the company.  At the time, Buffett’s stake was below the 3 percent threshold, the lowest that requires disclosure.

Buffett’s Berkshire held 3 percent of Swiss Re as of March 2009, data compiled by Bloomberg show.  The Zurich-based reinsurer is increasing surplus capital as it bids to regain its AA credit rating and repay 3 billion francs ($2.87 billion), which Buffett injected into the company last February.