Berkshire Hathaway unit acquires part of Swiss Reinsurance Co.
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A unit of billionaire Warren Buffett’s Berkshire Hathaway Inc. acquired a block of the U.S. life reinsurance business of Swiss Reinsurance Co. for nearly $1.3 billion, freeing up the Zurich, Switzerland, company’s capital for more profitable investments.
The deal with Berkshire Hathaway Life Insurance Inc., announced Monday, was retroactive to Oct. 1.
It will release 300 million Swiss francs (about $292 million) in capital reserves for Swiss Reinsurance.
Under terms of the deal, called a retrocession, Omaha-based Berkshire Hathaway will be able to pocket premiums but also will be on the line for as much as $1.5 billion in potential losses.
-- Tiffany Hsu
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