Ashurst has advised National Indemnity Company (NICO) and the Australian branch of Berkshire Hathaway Specialty Insurance Company (both subsidiary companies of Berkshire Hathaway Inc.) on a strategic relationship with Insurance Group Australia (IAG) involving reinsurance, an equity subscription and an asset sale.

This transaction marks the Berkshire Hathaway group's first investment into the Australian market and involves one of the largest quota share reinsurance treaties ever agreed.

The deal, which was announced on 16 June 2015, involves:

    * A 10-year 20% quota share reinsurance of IAG's consolidated general insurance business to NICO, with an annual projected premium of A$2 billion;
    * A 3.7% investment (A$500m) in IAG by NICO via a share placement with an option for IAG to place up to an additional 5% with NICO within 24 months; and
    * The migration to IAG of Berkshire Hathaway Specialty's local personal and SME business. Berkshire Hathaway Specialty will acquire certain rights and assets in relation IAG's ASX 250 corporate property and liability insurance business in Australia.

Lead partner on the deal Rehana Box said: "We feel very privileged to have had the opportunity to assist the Berkshire Hathaway group with its first Australian investment.

"This is a significant transaction for the Berkshire Hathaway group, IAG and the Australian financial sector generally."

The Ashurst team led by Rehana included partners Bruce Macdonald and Sarah Dulhunty, senior associates Philip Hopley and Andrew Kim, with lawyers Genovieve Lajeunesse, Justin Steele (Corporate); partner Tim Brookes and senior associate Karen Dwyer (Disputes); partner Jennie Mansfield (Employment); partners Peter Armitage and Ross Zaurrini (Competition); and partners Barbara Phair and Peter McCullough, with senior associate Marcus Ryan (Tax).