Reinsurance group to sell block of U.S. life insurance business to Berkshire Hathaway
LONDON (MarketWatch) -- Reinsurance giant Swiss Re said Monday it's agreed a 1.3 billion Swiss Franc ($1.26 billion) deal to sell a block of life insurance business to Warren Buffett's Berkshire Hathaway, deepening the ties between the two firms.
Swiss Re (CH:RUKN 49.34, -1.26, -2.49%) said it will receive the payment as a ceding commission in return for reinsuring a closed block of U.S. term-life-insurance business
The Swiss group said it remains committed to its U.S. life insurance business, but believes the proceeds, along with around 300 million francs of capital that will be freed up, can be used to achieve a higher return elsewhere.
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