Shares of Bajaj Finserv shot up by 20 per cent on the BSE on Thursday following reports that Warren Buffett's Berkshire Hathaway has struck a deal with the company's unit Bajaj Allianz General Insurance.
US-based Berkshire Hathaway, a diversified holding company with subsidiaries that include GEICO, National Indemnity, on Wednesday announced its plans to enter the Indian insurance sector as a corporate agent of Bajaj Allianz General Insurance. Berkshire India, a majority-owned unit of Berkshire Hathaway Inc has been incorporated to sell and distribute general insurance products in India through their online distribution portal — www.berkshireinsurance.com. The company's stock surged by 20 per cent to touch an upper circuit of Rs. 527.45 on the BSE on the back of heavy buying.
"Berkshire India will sell insurance directly to the consumer by utilising the internet portal and tele-marketing. Initially, the focus will be on motor insurance, but the company will continuously update its business model to meet the needs of the fast-evolving Indian insurance sector," it said.