Buffett Cuts Back on Munich Re Holding

Tuesday, December 15, 2015 | 0

Warren Buffett meets with President Barack Obama in the Oval Office in 2010.

Warren Buffett again cut back on his investment in German reinsurer Munich Re, as the enthusiasm he had for reinsurance seems to continue to fade.

Buffett cut his holding in Munich Re to 4.6% from a previous holding of 9.7%, according to Reuters, which cited a regulatory filing from the reinsurer last week.

The move follows a reduction in that holding in September, when the share of Munich Re held by Buffett’s Berkshire Hathaway Inc. and National Indemnity Co. fell from 12% to 9.7%.

According to news and analysis site Artemis.bm, Buffett previously called insurance and reinsurance the engine of Berkshire Hathaway’s growth.

But in May, Buffet told Berkshire Hathaway shareholders that the reinsurance business was “unlikely to be as good as it was,” Reuters reported.