Michael Huttner, JP Morgan

Berkshire Hathaway Inc. (BRK.A) - Michael Huttner at JP Morgan

Investment guru But Buffett isn't just any investor Known as the "Oracle of Omaha," his every move is scrutinized by those eager to mimic his knack for accruing vast amounts of wealth: Forbes magazine has ranked him the richest man in the world, with a fortune amounting to over $60 billion Clearly, Buffett believes in the value of re insurance groups He also owns 32 percent of Swiss Re, a rival reinsurer JP Morgan analyst Michael Huttner told Dow Jones that Buffett's interest in such companies makes sense, as they are currently "really cheap stocks" 

Berkshire Hathaway Inc. (BRK.A) - Michael Huttner at JP Morgan

A spokeswoman for the company tells Dow Jones , "We are pleased about every investor, that's a confirmation of our sustainable strategy" This morning, Munich Re announced that Berkshire Hathaway's stake stood at 3045 percent on The three percent level triggers a public disclosure under German rules Reuters quotes JP Morgan analyst Michael Huttner as saying, "It appears to be a portfolio investment for Buffett rather than a strategic one" 

Muenchener Rueckversicherungs Gesellschaft AG (MUV2) - Michael Huttner at JP Morgan

A spokeswoman for the company tells Dow Jones , "We are pleased about every investor, that's a confirmation of our sustainable strategy" This morning, Munich Re announced that Berkshire Hathaway's stake stood at 3045 percent on The three percent level triggers a public disclosure under German rules Reuters quotes JP Morgan analyst Michael Huttner as saying, "It appears to be a portfolio investment for Buffett rather than a strategic one" 

Muenchener Rueckversicherungs Gesellschaft AG (MUV2) - Michael Huttner at JP Morgan

"It appears to be a portfolio investment for Buffett rather than a strategic one," JP Morgan analyst Michael Huttner said Munich Re's share turned positive on the news, rising by as much as 2%, before paring gains to ease 01% at 10840 euros by 1028 GMT The DJ Stoxx index of European insurance shares fell 11% The stake was worth around 740 million euros (US$1 billion), according to a Reuters calculation 

Allianz SE (ALV) - Michael Huttner at JP Morgan

JP Morgan analyst Michael Huttner said Allianz was probably not interested in Swiss Life's core business of group pensions in Switzerland and also did not need to buy access to Swiss Life's pensions broker AWD, through which Allianz already sells A takeover might also raise cartel questions in Germany and would also weigh on Allianz's regulatory solvency capital, Huttner said "None of the arguments are compelling for doing a deal There are lots of little negatives but nothing that's a big positive," Huttner said 

Swiss Life Holding (SLHN) - Michael Huttner at JP Morgan

JP Morgan analyst Michael Huttner said Allianz was probably not interested in Swiss Life's core business of group pensions in Switzerland and also did not need to buy access to Swiss Life's pensions broker AWD, through which Allianz already sells 

Hannover Rückversicherung AG (HNR1) - Michael Huttner at JP Morgan

The company intends to rebalance its business by achieving an even split between life/health and non life reinsurance over the next five years, boosting the share of life and health premiums from around 42 percent this year, while trimming non life, now at around 58 percent of gross premiums. The key risk is that Hannover Re is writing less high margin natural catastrophe cover in part because of the rising cost of retrocession, or the passing of some risks to other reinsurers. Foregoing some high margin "nat cat" business is part of the price of rebalancing the underwriting book for more stability. "Hannover Re have seen that they can't survive just on a diet of caviar. They have to eat vegetables, too," said JP Morgan analyst Michael Huttner.  

Swiss Reinsurance Company Ltd. (RUKN) - Michael Huttner at JP Morgan

Swiss Re shares rose nearly 20 percent, helping the DJ Stoxx European insurance index post a 3.4 percent gain. Collins Stewart analyst Ben Cohen raised his recommendation on Swiss Re to 'buy' from 'sell' on the better than expected result. "With asset prices showing some signs of stabilisation, our concerns that the group will need to raise equity at distressed prices have lessened materially," Cohen said. According to StarMine, which weights analysts' forecasts according to their track record, Swiss Re trades at 6.8 times 12 month forward earnings, a discount to the world's biggest reinsurer, Munich Re ( MUVGn.DE ), which trades at a multiple of 8.4, but at a premium to No. 4 player Hannover Re ( HNRGn.DE ), at 5.9. JP Morgan analyst Michael Huttner also noted Swiss Re's improvement.  

April Group S.A. (APR) - Michael Huttner at JP Morgan

"You are looking at ROEs in the low to mid-teens in 2009, and there are not many other financial stocks where you can be confident that what they are earning will be distributed to shareholders over a short time horizon. According to StarMine, which weights analysts' forecasts by their track record, Munich Re trades at 7.8 times 12-month forward earnings and Scor at 7.9 times, a premium to insurers Allianz and AXA, which trade at around 6. Cohen said he pencilled in percentage price rises in the high single digits or low double digits in the next big reinsurance contract renewal talks in April and July. "If the economy is tough, with low underlying growth, you may not see all of it in companies' top lines," he said. OLD HABITS Even so, there are still some who doubt reinsurers' resolve in delivering a "hard market", where reinsurers' prices and conditions improve relative to their insurance company clients. JP Morgan analyst Michael Huttner said the damage to insurers' balance sheets from the financial crisis might not be enough to allow reinsurers scope for big price increases without big natural catastrophes such as hurricanes or earthquakes.  

Scor S.E. (SCR) - Michael Huttner at JP Morgan

"You are looking at ROEs in the low to mid-teens in 2009, and there are not many other financial stocks where you can be confident that what they are earning will be distributed to shareholders over a short time horizon. According to StarMine, which weights analysts' forecasts by their track record, Munich Re trades at 7.8 times 12-month forward earnings and Scor at 7.9 times, a premium to insurers Allianz and AXA, which trade at around 6. Cohen said he pencilled in percentage price rises in the high single digits or low double digits in the next big reinsurance contract renewal talks in April and July. "If the economy is tough, with low underlying growth, you may not see all of it in companies' top lines," he said. OLD HABITS Even so, there are still some who doubt reinsurers' resolve in delivering a "hard market", where reinsurers' prices and conditions improve relative to their insurance company clients. JP Morgan analyst Michael Huttner said the damage to insurers' balance sheets from the financial crisis might not be enough to allow reinsurers scope for big price increases without big natural catastrophes such as hurricanes or earthquakes.  

SCOR Holding (Switzerland) Ltd. - Michael Huttner at JP Morgan

"You are looking at ROEs in the low to mid-teens in 2009, and there are not many other financial stocks where you can be confident that what they are earning will be distributed to shareholders over a short time horizon. According to StarMine, which weights analysts' forecasts by their track record, Munich Re trades at 7.8 times 12-month forward earnings and Scor at 7.9 times, a premium to insurers Allianz and AXA, which trade at around 6. Cohen said he pencilled in percentage price rises in the high single digits or low double digits in the next big reinsurance contract renewal talks in April and July. "If the economy is tough, with low underlying growth, you may not see all of it in companies' top lines," he said. OLD HABITS Even so, there are still some who doubt reinsurers' resolve in delivering a "hard market", where reinsurers' prices and conditions improve relative to their insurance company clients. JP Morgan analyst Michael Huttner said the damage to insurers' balance sheets from the financial crisis might not be enough to allow reinsurers scope for big price increases without big natural catastrophes such as hurricanes or earthquakes.