Berkshire Hathaway Inc agree to sale an workers’ compensation insurance company, this is an unique action of Warren Buffett.
Berkshire chairman and chief executive Warren Buffett said that Berkshire bought the company is aiming to keep it in long period consideration.
Brian Snover, general counsel for Berkshire’s reinsurance unit said, the company agreed to sell Applied Underwriters in Omaha, Nebraska, in an effort to avoid conflict between Berkshire’s workers’ compensation insurers. Thirteen years ago, Berkshire acquired a majority stake of Applied Underwriters.
General counsel for Applied Underwriters Jeffrey Silver said: “Berkshire has a number of worker-compensation companies that have channel conflicts, and this sale eliminates inherent competition between these entities.”
In these years, Applied Underwriters has faced state regulatory issues linked to controversial worker-compensation policies and agreed to stop selling them without approval in some states. Those issues had already been sloved, so there is no related to the sale of Applied Underwriters, Silver said.
Silver did not have comments on the size of the acquirer or deal. He said he hope the deal could complete in the third quarter.
According to Dealogic, Berkshire hasn’t sold a wholly owned subsidiary in recent decades.