Warren Buffett, one of the richest people in American and the world, is seeking up to $1 billion from a Swiss life insurance company.
Buffett’s Berkshire Hathaway conglomerate is claiming up to $1 billion from Swiss Re in a dispute over a life insurance deal they agreed on in 2010.
According to a report by Reuters, 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.
Not too many details were given for the Berkshire Hathaway claims other then it stemming from a life insurance deal, In 2009 Buffett’s company had loaned Swiss Re $3.3 billion after it incurred heavy losses on derivative investments during the financial crisis. But the loan was said to since been paid back.
Swiss Re is currently the world’s No.2 reinsurer and experts from JP Morgan say that if the insurer had to pay the money to Berkshire Hathaway it could absorb it and continue on after recovering from previous financial issues.
“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,” JP Morgan anaylists said.
According to the Forbes Global 2000 list Berkshire Hathaway is the eighth largest public company in the world that oversees and manages a number of subsidiary companies.
Berkshire’s insurance businesses provide insurance and reinsurance of property and casualty risks primarily in the United States. In addition, as a result of the General Re acquisition in December 1998, Berkshire’s insurance businesses also included life, accident and health reinsurers, as well as internationally based property and casualty reinsurers.
Buffetf’s Berkshire Hathaway already owns a 3% stake, with rights to own more than 20%.