Warren Buffett’s Berkshire Hathaway and its subsidiary National Indemnity have reduced their collective shareholding in Munich Re from 12% to less than 10%.

The move comes after the giant US investment company surprised the London market by saying it will completely withdraw next January from major facilities run in conjunction with brokers Willis and Aon.

London market reports say Berkshire Hathaway will withdraw capacity from the Willis360 specialty lines facility formed in 2013 and the sidecar deal signed about the same time with Aon, under which it underwrites 7.5% of the business the broker places at Lloyd’s.

While Berkshire Hathaway has not publicly explained its reasons for backing out of the arrangements, London market sources have told insuranceNEWS.com.au it is probably linked to falling earnings from the reinsurance and specialty markets.

Berkshire Hathaway has had a shareholding in Munich Re since 2010 through companies it directly and indirectly owns. Its shareholding is now 9.7%.

“We are pleased [Berkshire Hathaway] has been a significant shareholder for many years,” Munich Re CFO Jörg Schneider said. “Most of our shareholders now come from countries other than Germany, and the percentage of private investors has increased strongly.”