MUNICH (Reuters)—Munich Reinsurance Co. sees star investor Warren Buffett's stake in the reinsurer as evidence that he backs its long-term strategy aimed at creating stability, Munich Re's chief executive said Wednesday.

"He would not have bought in if he didn't think our strategy good," Nikolaus von Bomhard told a news conference, referring to Mr. Buffett's voting stake in the world's biggest reinsurer, last reported to be at more than 5%.

Mr. Buffett also holds options on a further 1.9% stake that expire on Thursday, but he would be required to disclose the change in his holding if the stake rises above 10% or falls below 5%.

Analysts have said they see Mr. Buffett's stakeholding as financial rather than strategic, a view Mr. von Bomhard corroborated by noting that Mr. Buffett does not traditionally seek to influence the management strategy of the companies he holds.

"He doesn't buy what he doesn't understand," Mr. von Bomhard added.

Mr. Buffett is already a global player in reinsurance through his Berkshire Hathaway Inc. and his 3% stake in the world's second biggest reinsurer, Swiss Reinsurance Co.

Munich Re on Wednesday said it was targeting net profit of €2 billion ($2.72 billion) this year, and further improvement in 2011, as it seeks to reduce the volatility of earnings.

Reinsurers are hoping investors will see the advantage of strategies aimed at safe and stable returns following the financial market ructions of the past two years.

The world's fourth-biggest reinsurer, Hannover Reinsurance Co. is following a similar strategy and is due to release 2009 results on Thursday.

The presence of Mr. Buffett, a traditional proponent of long-term investing, would help highlight Munich Re's efforts, Chief Financial Officer Jörg Schneider said.

"He is ideal for us," he told Reuters.

Munich Re's 2010 target is down from the more than €2.5 billion ($3.41 billion) it earned in 2009, when it saw a windfall from no big losses on natural disasters and a rebound in financial markets.