Swiss Re Repays Berkshire’s Investment After Buffett Eases Early Payment Terms

In a surprising development, Swiss Re has reached an agreement with Berkshire Hathaway to repurchase the CHF 3 billion convertible preferred security which represented a large injection of cash into Swiss Re at a time when the company was at risk of a ratings downgrade. We discussed the terms of the investment shortly after the deal was finalized in March 2009. Read this article for more details and analysis.

Gulf of Mexico Disaster Calls for Prudent Regulatory Changes

Gulf of Mexico Disaster Calls for Prudent Regulatory Changes

Initial reports regarding the Deepwater Horizon disaster indicated that BP was self insured for the costs of the massive cleanup efforts that will likely be required for years to come. While BP claims to be willing to pay for all “legitimate claims”, it is already inevitable that the economic fallout will extend far beyond BP’s shareholders. Read this article for more details.

Swiss Re Declares Intention to Redeem Berkshire Investment

Swiss Re Declares Intention to Redeem Berkshire Investment

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.

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