Another Deal for Buffett as Berkshire Buys ING Reinsurer Unit
Warren Buffett and his Berkshire Hathaway group have had some week. First came the announcement of its deal to buy 60% of Marmon Holdings, an industrial group owned by trusts benefiting members of the Pritzker family of Chicago for $4.5 billion, and now a double investment dose: the start-up of a bond insurer for cities, counties and states that issue bonds to finance sewer systems, schools, hospitals and other public projects; and its deal to purchase a reinsurer from Dutch financial-services giant ING for $433 million.
Berkshire Hathaway is buying the NRG unit off ING, as the Dutch firm wants to concentrate on its core insurance, banking and asset-management business.
ING is taking a capital loss after tax of €100 million this year on the sale. Berkshire Hathaway didn't immediately issue a statement on its side of the deal.
NRG, formerly called Nederlandse Reassurantie Groep, hasn't taken on new business since 1993. NRG's life reinsurance subsidiaries have been sold and a number of the remaining insurance liabilities were successfully settled, ING said.
Published on December 28, 2007
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