Swiss Re announced annual results for 2009 yesterday and declared that the measures taken in 2009 to rebuild the company’s capital base have been very effective. In a letter to shareholders, Swiss Re Chairman Walter B. Kielholz and CEO Stefan Lippe made comments regarding the company’s capital position and intention to redeem the CHF 3 billion investment made by Berkshire Hathaway last year. Read this article for more details.
Swiss Re has announced the closing of a U.S. individual life retrocession transaction with Berkshire Hathaway. The transaction transfers the risk associated with a block of yearly renewable term individual life insurance contracts written prior to 2004 to a Berkshire Hathaway subsidiary in exchange for CHF 1.3 billion ($1.27 billion). Read this article for more details.
According to a report published this morning, J.P. Morgan analysts believe that Swiss Re will be in a position to pay back its CHF 3.6 billion loan from Berkshire Hathaway as soon as June 2010. We originally discussed the terms of Berkshire’s investment in Swiss Re last March shortly after the transaction was finalized. Read this article for more details.
Berkshire Hathaway and Swiss Re have finalized the terms of the funding arrangement initially announced on February 5, 2009. While the main elements of the deal have been known for some time, this is a good opportunity to revisit the terms of the arrangement and the overall nature of this investment. Read this post for more details.