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
The iconic headquarters of Swiss Re, in London. The reinsurer posted a substantial annual loss and will raise money from Warren Buffett.   (©ryanfb)
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(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.