Billionaire Warren Buffett’s Berkshire Hathaway group has taken a three per cent holding in the world’s largest reinsurer, Swiss Re.
Buffett paid £420m for the stake. As a result of the deal Swiss Re has announced an extra £821m buyback of equity over the next 18 months, which has reassured investors.
Berkshire Hathaway has also entered into a five-year contract with the reinsurer, whose shares have nose-dived in recent months. The agreement gives Buffett’s firm a 20 per cent share of Swiss Re’s property and casualty business.