US investment guru Warren Buffett is reportedly negotiating to buy the world's largest aviation insurer.

Buffett, who controls 8% of Lloyd's underwriting, was reported in the Telegraph to be in in talks to buy Global Aerospace Underwriting Managers (GAUM), owned jointly by Aviva and Royal & SunAlliance, plus a share of GAUM's insurance capacity pool.

The move to buy the world's biggest aviation insurer will incease Buffett's presence in the London aviation risks market. He has already built his Lloyd's underwriting up to nearly £1bn through his Berkshire Hathaway company.

Tony Medniuk, GAUM chief executive, said: "We have heard many different rumours in the market about our 2003 underwriting arrangements.

"We cannot comment on any of them. We do expect to confirm our 2003 underwriting arrangements before the end of the month. We are confident that they will keep us at the forefront of the aerospace insurance market."

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