Munich Re has agreed to acquire an additional 11% of the shares in Global Aerospace Underwriting Managers, taking its stake to 51%.
The remaining 49% stake will be owned by a subsidiary of Bershire Hathaway.
Global manages the Global Aerospace Pool. Munich Re’s share in the pool will increase by 5% with effective from 1 January,2019.
The amount being paid for the stake has not been disclosed by both the companies.
Global Aerospace provides aerospace and aviation insurance with a global portfolio of clients who are engaged in each aspect of the aviation and aerospace industries.
Global’s Group CEO Nick Brown said: “We are fortunate in having the backing of two such strong and committed shareholders.
“Munich Re has long had a strategic interest in increasing its investment in Global, and this deal achieves that, while ensuring that Berkshire Hathaway continues to have a very significant interest. For our customers, pool-members and employees it is business as usual.”
Brown also stated that the acquisition will be practically invisible to the customers and employees of Global.
By the end of October, Munich Re stated that it is expecting this year’s third quarter loss to amount to €1.4bn and a total of €2.7bn after retrocession from these three hurricane events of Harvey, Irma and Maria.
In March, the company expected a profit in the range of €2bn to €2.4bn. But, in September, it stated of expected losses from the Hurricanes, which might jeopardize its profit target for the year.
Image: Munich Re acquires additional stake in Global Aerospace Underwriting Managers. Photo: Courtesy of Munich Re.