Warren Buffett invests £1.79bn in Swiss Re
Thursday 5th February 2009, 9:32AM GMT.
Warren Buffett is to invest three billion Swiss francs (£1.79 billion) in Swiss Re, which has today announced massive writedowns for the last financial year.
The reinsurer, the world’s second-largest, said it wrote down six billion Swiss francs (£3.38 billion) worth of toxic assets.
The announcement was accompanied with confirmation of a net loss of one billion Swiss francs.
At the same time, Zurich Financial Services reported a 23 per cent fall in its business operating profit.
Mr Buffett, who is estimated to have a personal fortune of $62 billion (£42.9 billion), will own 30 per cent of Swiss Re with the investment, made through Berkshire Hathaway.
The reinsurer’s chief executive officer Jacques Aigrain said he was “disappointed” with the 2008 losses, which came about through exposure to the American mortgage market.
“We have taken steps to protect our capital strength to ensure the continued trust of our clients, and we continue to manage our business in a disciplined, conservative manner,” he said.
“Warren Buffett’s agreement to invest in Swiss Re is a testament to the strength of our franchise.”
Mr Buffett, 78, added: “We are delighted to have this opportunity to increase our investment in Swiss Re. I am very impressed by Jacques Aigrain and his management team.”
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