* No threat to Swiss Re dividend - JP Morgan
* Shares up 0.8 percent, in line with sector
LONDON, Dec 4 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 to 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 Nov. 8, adding the claim was
Swiss Re and Berkshire Hathaway were not available to
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 1125 GMT on Tuesday,
in line with a European insurance sector index.
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.