General Re pays pounds 100m for DP Mann

GENERAL RE, the giant US reinsurer being taken over by Berkshire Hathaway, Warren Buffett's (pictured) investment firm, has agreed to buy DP Mann Holdings, a UK insurer, for around pounds 100m.

The takeover will give General Re its first exposure to the Lloyd's of London insurance market. DP Mann will benefit from an increase in its capital strength. "This deal is about giving us the strength that comes from being part of a major international insurance group,'' said David Mann, the founder of DP Mann, which has had a working relationship with General Re for 14 years. While huge claims almost caused the collapse of Lloyd's in the early 1990s, DP Mann has been profitable every year since it was founded in 1984.