Berkshire Hathaway Buys Stake in Insurance Australia Group

Berkshire Hathaway Buys Stake in Insurance Australia Group

Berkshire Hathaway Buys Stake in Insurance Australia Group

The FINANCIAL -- One of Australia's largest insurers has struck a strategic partnership with Warren Buffett's Berkshire Hathaway Inc., selling a 3.7% stake for 500 million Australian dollars (US$388 million) to the well-known investor, according to Nasdaq.

Insurance Australia Group Ltd. (IAG.AU) said on June 16 it had agreed a 10-year arrangement with Berkshire that it expects will reduce volatility in its earnings and its capital requirements.