Warren Buffett’s Berkshire Hathaway has bought a “3.7 percent stake in Insurance Australia Group (IAG) for 500 million Australian dollars ($388 million) as part of a partnership that IAG said would reduce its capital requirements and support its return on equity targets”.
Berkshire will buy 89.77 million shares at A$5.57 each, IAG’s closing price on Monday, and take a 20 percent quota of IAG’s consolidated insurance business over 10 years, IAG said on Tuesday. And (IAG) is set to reshuffle its executive team to reflect its long term business strategy.
IAG’s chief executive of commercial insurance, Peter Harmer, will lead the Group’s digital strategy over 2015. He will be succeeded by Ben Bessell, the current chief commercial officer who will step into Harmer’s role as acting chief executive commercial insurance…..See http://www.intelligentinsurer.com/news/iag-reshuffles-executive-team-5094