By Simon Kennedy
LONDON (MarketWatch) — Swiss Re said Monday that it’s agreed a resinsurance deal with Warren Buffett’s Berkshire Hathaway that the Swiss group said would help improve its capital efficiency. The firm said it will receive a ceding commission of 1.3 billion Swiss francs ($1.26 billion) for the deal, which involves reinsuring a closed block of yearly renewable term individual life reinsurance business with Berkshire Hathaway Life Insurance Co. Swiss Re said the deal will also free up around 300 million francs of capital. “This is a significant step forward in Swiss Re’s strategy to increase capital efficiency,” said Christian Mumenthaler, the group’s head of life and health. “The transaction puts us in an excellent position to redeploy the capital at more attractive returns,” he added.
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