(Bloomberg) -- Warren Buffett is expanding his wager onItaly.

The billionaire’s Berkshire Hathaway Inc. said Thursday itagreed to buy about 9% of Italian insurer Societa Cattolica diAssicurazioni Scrl from Banca Popolare di Vicenza SpA, one oftwo failed banks in the northern region of Veneto.

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A company controlled by Berkshire is buying the Cattolica sharesat 7.35 euros each for a total of 115.9 million euros, according toa statement Thursday. The Verona, Italy-based insurer rose as muchas 23%, the biggest advance on record, to 9 euros. It traded at8.42 euros as of 1:46 p.m. in Milan, giving the company a marketvalue of 1.46 billion euros ($1.7 billion).

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The purchase follows the December acquisition by Berkshire unitMarmon Holdings Inc. of Modena, Italy-based Zephir SpA, amanufacturer of industrial tractors and vehicles that move traincars in rail yards. Earlier last year, Marmon announced it wouldbuy Italian pasta-equipment maker Dominioni Punto & Pasta Srland catering-equipment firm Angelo Po.

Attractive long-term prospects

While Italy, Europe’s third-largest economy, has been strugglingwith slow growth, Buffett has long said he’s willing to enduresluggish periods at businesses with attractive long-term prospects.And there are signs the outlook is brightening. The economy isstarting to pick up and the country’s banking system hasstabilized, fueling a boom in initial public offerings that’spushed new listings to the highest level in at least a decade.

The Italian government has said it expects the country’s debtload to fall this year, and Finance Minister Pier Carlo Padoan saidlast month that the government foresees annual growth in grossdomestic product of 1.5% this year, as well as in 2018 and 2019.The Treasury boosted its forecast from the 1.1% expansion for 2017predicted in April.

Berkshire, based in Omaha, Nebraska, said Tuesday it bought astake in Pilot Travel Centers LLC, owner of the Pilot Flying Jtruck stop chain, and detailed plans to become the Knoxville,Tennessee-based company’s biggest shareholder in six years.

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