NEW YORK (Reuters) - American International Group Inc (AIG.N) has decided to stop signing new reinsurance contracts with Warren Buffett’s Berkshire Hathaway Inc (BRKa.N) due to competitive reasons, Bloomberg News reported, citing an unidentified person familiar with the decision.
AIG stopped entering new deals with Berkshire units including National Indemnity Co. and General Re about two months ago, but existing contracts will not be affected, Bloomberg said, citing the person.
The decision comes after Berkshire hired away senior AIG executives and Buffett said he planned to expand his company’s commercial insurance operations that compete with AIG.
A spokesman for AIG declined to comment. A spokeswoman for Berkshire did not immediately return a request for comment.
Reporting by Lauren Tara LaCapra; Editing by Stephen Coates