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Buffett Loans Billions to Swiss Re

Insurance giant turns to Omaha after heavy annual loss

By Jason Farago,  Newser Staff

Posted Feb 5, 2009 8:31 AM CST

(Newser) – Insurance giant Swiss Re has reported an annual loss of $860 million and will turn to Warren Buffett to retain its investment-grade rating, the Financial Times reports. The company will raise $2.58 billion, of which more than half will come from Berkshire Hathaway—leaving Buffett with more than 20% of one of the world's largest reinsurers. Swiss Re will also cut its dividends and end its activities in financial markets.

The iconic headquarters of Swiss Re, in London. The reinsurer posted a substantial annual loss and will raise money from Warren Buffett.
The iconic headquarters of Swiss Re, in London. The reinsurer posted a substantial annual loss and will raise money from Warren Buffett.   (©ryanfb)
The iconic headquarters of Swiss Re, in London. The reinsurer posted a substantial annual loss and will raise money from Warren Buffett.
The iconic headquarters of Swiss Re, in London. The reinsurer posted a substantial annual loss and will raise money from Warren Buffett.   (©Ian Muttoo)
The headquarters of the Swiss Reinsurance Co., one of the world's largest, in Zurich, Switzerland.
The headquarters of the Swiss Reinsurance Co., one of the world's largest, in Zurich, Switzerland.   (AP Photo/Keystone, Michele Limina, File)
In this May 21, 2008 file photo, U.S. Billionaire investor Warren Buffet speaks during a news conference in Madrid, Spain.
In this May 21, 2008 file photo, U.S. Billionaire investor Warren Buffet speaks during a news conference in Madrid, Spain.   (AP Photo/Paul White, file)
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COMMENTS
Showing 1 of 1 comment
Guest
Feb 4, 2009 11:42 PM CST
if this keeps going buffet could end up owning swiss re, goldman, ge, and others. not realistic but its nice to be the only player with cash as you can get a lot for your money when you are the last man standing.

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