Reinsurer Swiss Re could be on the hook for $1bn in damages over a life insurance deal agreed with Warren Buffett's Berkshire Hathaway conglomerate, according to reports.
Berkshire Hathaway is "alleging damages of between $0.5bn and $1bn", according to Swiss Re's third-quarter earnings statement. The firm said the claim, relating to a 2010 deal, was without merit. Swiss Re has met Berkshire to discuss the claim, while failure to resolve the dispute could lead to arbitration proceedings, the reinsurer said in its November earnings statement. However, analysts at JP Morgan said Swiss Re would be able to meet dividend forecasts even if the group had to pay Berkshire Hathaway. "Swiss Re's capital is in our view strong enough to absorb this and still hav...
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