Warren Buffett’s Berkshire Hathaway (BRK.B) (BRK.A) has agreed to sell its majority stake in Applied Underwriters, a workers’ compensation insurer that’s been under a number of regulatory investigations, to United Insurance Co., the New York Post reports, citing a filing with the California Department of Insurance.
UIC is buying the 81 percent stake owned by Berkshire as well as stakes owned by two other executives.
Financial terms weren’t disclosed.
Ex-clients have accused Applied Underwriters of being a “reverse Ponzi scheme” in a civil lawsuit filed in 2016; the company had denied the accusation.
One report in 2007 estimated that Berkshire paid $339M for the Applied Underwriters stake; KBW analyst Meyer Shields told the Post that it could now be worth $1B-$1.2B.
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