Warren Buffett seeks $1 billion from Swiss Re
LONDON (Reuters) - Warren Buffett's Berkshire Hathaway (BRKa.N) conglomerate is claiming up to $1 billion from reinsurer Swiss Re (SRENH.VX) 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 .SXIP.
Analysts at JP Morgan 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.
(Reporting by Myles Neligan; Editing by Dan Lalor)
- Obama condemns killing of reporter, U.S. hits militants in Iraq |
- Gaza war rages on, Hamas says Israel tried to kill its military chief |
- Four beheaded corpses found in Egypt's Sinai: security sources
- Father of Texas 'affluenza' teen arrested for impersonating police officer
- Islamic State opens new anti-U.S. front with beheading video