Tags: Buffett | berkshire | Swiss | Re

Warren Buffett Seeks $1 Billion From Swiss Re

Tuesday, 04 Dec 2012 07:43 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Warren Buffett's Berkshire Hathaway conglomerate is claiming up to $1 billion from reinsurer Swiss Re in a dispute over a life insurance deal they agreed in 2010.

Berkshire Hathaway is "alleging damages of between $0.5 and $1 billion," Swiss Re said on page 73 of the third-quarter earnings statement it issued on November 8, adding the claim was without merit.

Swiss Re and Berkshire Hathaway were not available to comment.

Berkshire's claim against Swiss Re was first reported by the Insurance Insider newspaper on Monday.

Swiss Re shares were up 0.8 percent at 6:25 a.m. EDT on Tuesday, in line with a European insurance sector index.

Analysts at JPMorgan said Swiss Re would be able to meet dividend forecasts even if it had to pay Berkshire Hathaway.

"Swiss Re's capital is in our view strong enough to absorb this and still have the ability to raise the normal dividend and pay a special dividend too," they wrote in a note.

Swiss Re has met Berkshire to discuss the claim, and failure to resolve the dispute could lead to arbitration proceedings, the reinsurer said in its earnings statement in November.

Swiss Re, the world's No.2 reinsurer, accepted an emergency $3.3 billion loan from Berkshire in 2009 after it incurred heavy losses on derivative investments during the financial crisis. That loan has since been repaid.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
You May Also Like
Around the Web

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved