Buffet takes General Re into his fold

Article Abstract:

Berkshire Hathaway Inc. has moved to acquire General Re Corporation, adding to its investment company holdings in a deal worth $21.7 million in stocks. Stamford Connecticut-based General Re, the third largest resinsurer in the world, will add $24 billion in stock and bond investments to Berkshire's coffers, and will greatly enhance Berkshire's presence in insurance with this acquisition. General Re, which specializes in covering the risks of other insurerrs, will gain the capability to expand its coverage and its foreign operations.

Comment:

Berkshire Hathaway to buy General Re in a deal worth $21.7 million in stock

Property & Liability Insurance, Direct Property and Casualty Insurance Carriers, Reinsurance, Reinsurance Carriers, Property and casualty insurance, Berkshire Hathaway Inc., General Re Corp.

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Marsh & McLennan to buy big British insurance broker

Article Abstract:

Marsh & McLennan of New York agreed to buy London based Sedgwick Group for $2.05 billion in cash. Sedgwick brings to Marsh company expertise in maritime and energy coverage, from oil drilling rigs to the suppliers of drilling equipment. Sedgwick is the largest independent broker in Europe. The acquisition fortifies Marsh's position as the world's largest insurance broker. The deal was the latest in a struggle between Marsh and its rival, the Aon Corporation of Chicago, for worldwide dominance.

United Kingdom, Insurance Agencies and Brokerages, Insurance Agents & Brokers, Insurance industry, Marsh & McLennan Companies Inc., Sedgwick Group PLC

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A humbled Cendant calls off $3.1 billion American Bankers deal

Article Abstract:

Cendant Corporation withdrew from its proposed $3.1 billion acquisition of American Bankers Insurance Group (ABIG). Cendant was competing with American International Group to buy ABIG. Cendant has been plagued recently by accounting problems. ABIG will receive $400 million as a breakup fee. ABIG specializes in life insurance on credit card balances. Cendant's CEO, Henry R. Silverman, said that the acquisition was no longer strategically or financially feasible.

Comment:

Cendant Corporation withdraws from proposed $3.1 billion acquisition of American Bankers Insurance Group

Life Insurance, Direct Life Insurance Carriers, Patent Owners & Lessors, Lessors of Nonfinancial Intangible Assets (except Copyrighted Works), Patent licensing, Avis Budget Group Inc., American Bankers Insurance Group Inc.

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