Swiss Re Transfers Part Of US Reinsurance Business To Berkshire Hathaway
Swiss Re has announced the closing of a US individual life retrocession transaction with Berkshire Hathaway. Under the terms of the contract, Swiss Re will, on a 100% quota share basis, reinsure a closed block of yearly renewable term individual life reinsurance business, written prior to 2004, with Berkshire Hathaway Life Insurance Company of Nebraska.
Swiss Re said that the transaction builds on its tradition of portfolio steering and reinsurance risk transformation and will improve its capital efficiency.
The transaction is effective October 2009 and will be reported by Swiss Re in the first quarter of 2010. Swiss Re will receive a ceding commission in the region of CHF1.3 billion and will release CHF0.3 billion of capital to support the business. Swiss Re will continue to provide administration and reporting services for the subject business. Click here