On Air Now

Current Show

Coast to Coast AM   12:00 AM - 5:00 AM

Contact Coast to Coast AM at 1-800-825-5033

Show Info »

Upcoming Shows

Program Schedule »

Listen

Listen Live Now » 550 AM Wausau, WI 99.9 FM Stevens Point, WI

Weather

Current Conditions(Wausau,WI 54403)

More Weather »
64° Feels Like: 64°
Wind: W 12 mph Past 24 hrs - Precip: 0.01”
Current Radar for Zip

Tonight

Scattered Thunderstorms 62°

Tomorrow

AM Thunderstorms 71°

Sun Night

Scattered Thunderstorms 52°

Alerts

Warren Buffett seeks $1 billion from Swiss Re

Investor Warren Buffet arrives for the premiere of the film "Wall Street: Money Never Sleeps" in New York September 20, 2010. REUTERS/Lucas
Investor Warren Buffet arrives for the premiere of the film "Wall Street: Money Never Sleeps" in New York September 20, 2010. REUTERS/Lucas

LONDON (Reuters) - 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 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 1125 GMT 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.

(This story has been corrected to add dropped word in first paragraph)

(Reporting by Myles Neligan; Editing by Dan Lalor)

Comments