Buffett buys Sun Life division
Published 28/10/2010 | 05:00
Berkshire Hathaway Inc yesterday agreed to buy a business backstopping life insurance policies from Sun Life Financial as Chairman Warren Buffett increases bets on reinsurance.
The business has about 70 employees in Canada, the US and Ireland, with life insurance in force of about $109bn (€79bn), according to Toronto- based Sun Life.
Mr Buffett, who oversees the largest reinsurer in the US, has assumed risks from XL Group and CNA Financial as carriers have moved to limit liabilities.
The 80-year-old investor has also wagered on the market through stock picks. He built a stake of more than 10pc in Munich Re, the world's biggest reinsurer.
"This transaction releases capital which can be put to work in other businesses," Sun Life Chief Executive Officer Donald Stewart said in a statement.
"Our reinsurance business is profitable, but it is not a growth area for Sun Life."