Berkshire Hathaway to Invest in Kemper Unit

Billionaire Warren Buffett’s Berkshire Hathaway Inc. will invest $125 million in a new Kemper Insurance Cos. unit that will underwrite commercial and professional liability coverage.

Berkshire, which owns General Re Corp., the third-biggest reinsurer, and Geico Corp., the fourth-biggest U.S. car insurer, will get a 15% stake in the unit.

Kemper will buy reinsurance, or insurance for insurance companies, from Berkshire.

Shares of Berkshire rose $300 to $75,200 on the NYSE.