July 19, 2016 / 3:35 PM / 3 years ago

Berkshire unit to insure representations in corporate mergers

Warren Buffett, chairman and CEO of Berkshire Hathaway, takes his seat to speak at the Fortune's Most Powerful Women's Summit in Washington October 13, 2015. REUTERS/Kevin Lamarque/File Photo

(Reuters) - Berkshire Hathaway Inc (BRKa.N) plans to begin insuring representations and warranties in mergers and other corporate transactions in the United States and Canada, the latest expansion of a fast-growing unit that Chairman and Chief Executive Warren Buffett has been building since 2013.

The unit, Berkshire Hathaway Specialty Insurance, on Tuesday said it hired Robert Underhill as senior vice president and head of its transactional liability business.

Underhill was previously a partner at U.S. law firm Locke Lord focusing on insurance mergers and acquisitions, reinsurance and other insurance transactional and regulatory matters.

Representations and warranties insurance can protect buyers and sellers from losses resulting from inaccuracies in documentation for their transactions, and can increase the prospect the transactions will eventually close. The Berkshire unit plans to offer primary and excess coverage.

Buffett set up BHSI in 2013 to enable Omaha, Nebraska-based Berkshire to insure commercial property and casualty risks.

BHSI has expanded rapidly, generating more than $1 billion of annual premiums, and adding offices in Europe, Asia and Australia.

The unit on Tuesday also said it appointed Dan Crosby as vice president of transactional liability, and Amy Bowman and Michael Brooks as assistant vice presidents.

Reporting by Jonathan Stempel in New York; Editing by Steve Orlofsky

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