Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland
Advertisement

Swiss Re settles dispute with Warren Buffett

Share this article

Swiss Re settles dispute with Warren Buffett
Warren Buffett. Photo: Mark Hirschey
09:30 CET+01:00
Swiss Re, one of the world's biggest reinsurance groups, says it resolved a dispute with billionaire Warren Buffett's Berkshire Hathaway over a 2010 insurance policies deal, and would accept a settlement of $610 million from the US company.

The Zurich-based reinsurer said in a statement on Thursday that it had agreed to take back some of the risks covered by a reinsurance contract with Berkshire Hathaway.

The total 
protection provided by the US firm to Swiss Re will be reduced from $1.5 billion to $1.05 billion, it added.
   
In 2009, Berkshire Hathaway had provided funds to help the Swiss reinsurer 
bounce back after it announced a 2008 loss of one billion francs ($1.05 billion).
   
In January 2010, the two groups agreed to a retrocession transaction, under 
which Berkshire Hathaway took on a portfolio of Swiss Re's annually renewable life insurance policies that dated from before 2004, limiting Swiss Re's exposure to claims.
   
The second part of the transaction involved a stop loss agreement provided 
by Swiss Re that limited Berkshire Hathaway's exposure from the overall deal to $1.5 billion.
   
Berkshire Hathaway subsequently served notice of damages and as required by 
the contract, the two sides negotiated the deal which has just been reached.
   
Swiss Re will thus "recapture" some of the risk, in exchange for payment by 
Berkshire Hathaway of $610 million, an operation which will have the effect of providing the Swiss group with an initial gain of around $100 million in the first quarter of 2013.

Get notified about breaking news on The Local

Share this article

Advertisement

From our sponsors

You won't believe how many Stockholmers are actually immigrants

To celebrate International Migrants Day, the team at Beyond Borders hit the streets to chat with Stockholmers about where they come from.

Advertisement
Advertisement
Jobs
Click here to start your job search
Advertisement
Advertisement

Popular articles

Advertisement
Advertisement