A subsidiary of Warren Buffett’s Berkshire Hathaway just purchased New York’s largest underwriter of medical professional liability insurance, called Medical Liability Mutual Insurance Company (MLMIC).
In a recent interview, Buffett referred to MLMIC as a “gem” of a company.
No numbers have been disclosed yet and the deal is expected to close in 2017. Nevertheless, rumors point towards an acquisition in the $2.7 billion mark.
MLMIC’s board has openly welcomed the change. They rest assured the purchase will not just benefit their stockholders but also enhance the firm’s competitiveness.
This acquisition falls within Buffett’s growing interest in insurance. It also adapts to his pattern of regularly adding firms in niche markets, in this case, within the scope of medical malpractice.
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