(Bloomberg) — Gen Re, the unit of Warren Buffett’s BerkshireHathaway Inc. that appointed a new chief executive officer in May,struck a deal with a rival reinsurer to help revive sales.

Alleghany Corp.’s TransRe will share revenue and risks onproperty-casualty reinsurance business that it underwrites throughbrokers and intermediaries for the next five years, the companiessaid July 5 in a statement. Gen Re’s commitment will help TransRedouble the risks that it takes on for clients, TransRe said in aseparate document listing facts about the deal.

Gen Re CEO Kara Raiguel is seeking new sources of premiumrevenue after being named to take over for Franklin “Tad” Montross.The business has been known for so-called direct reinsurance deals,in which customers transfer risk without the involvement ofbrokers.

“This agreement reflects Gen Re’s recognition of the limitationsof its historically direct distribution model,” Meyer Shields, ananalyst at Keefe Bruyette & Woods, said in a note toclients.

Berkshire may be willing to accept lower underwriting margins ina quest to generate more premium revenue and funds for Buffett toreinvest, Shields wrote, nothing that Gen Re had better ratios thanTransRe in recent years. Reinsurers take on obligations fromprimary carriers, and the business has been pressured as WallStreet firms pile in, seeking bets that aren’t correlated withstock and bond markets. Policy sales at Gen Re fell to $5.89billion last year from $6.42 billion in 2014.

Maintaining relationships

“This facility gives Gen Re a long-term, strategic platform toaccess a large part of the market in which they currently are notoperating,” TransRe said. “It allows them to enter the brokermarket in a cost-effective manner without disrupting its highlyrespected direct client relationships, culture and brand, and noadditional infrastructure is required.”

The deal will be available to the U.S. and Canadian brokermarket for business written starting on Aug. 1, the companies saidin the statement.

Alleghany is often compared to Berkshire because CEO WestonHicks follows Buffett’s strategy of using insurance funds to helppay for deals in other industries and writes a colorful annualletter to shareholders. When he agreed in 2011 to buy TransatlanticHoldings Inc., Hicks announced that he was bringing on JosephBrandon, who previously ran Gen Re, as chairman of thebusiness.

Hicks last year wound down a deal with a separate Berkshireunit. He agreed to pay $400 million to end contracts that coveredasbestos-related illness and environmental liabilities withBuffett’s company and Transatlantic’s former parent, AmericanInternational Group Inc. TransRe said the Gen Re deal could beextended beyond five years.

Related: Buffett deputy Jain will add Gen Re oversight as Montrossexits

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