全球第2大再保險公司Swiss Reinsurance Co.(RUKN-CH)周四宣佈，計畫向巴菲特旗下的控股公司Berkshire Hathaway增資30億瑞郎(約合26億美元)，俾補足減計資產所損耗的資本。
Swiss Re發布聲明表示，依市況而定，不排除額外增資20億瑞郎。該公司另發布預警，因投資部位減損，估計2008全年將虧損10億瑞郎。
Swiss Re執行長Jacques Aigrain說：「儘管2008 年投資績效不佳，公司產險與壽險等核心業務表現仍良好。」他強調，巴菲特願意投資，就是對該公司特許經營權最強力的保證。
Berkshire Hathaway將買進利息12%的可轉換金融工具(股票或債券)，並有權3年後以每股25瑞郎轉換為普通股。
截至周三收盤，Swiss Re於蘇黎士證交所上市股價，今年累跌40%至30.16瑞郎，市值僅剩106億瑞郎。
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Swiss Reinsurance Co.,the world’s second-biggest reinsurer,turned to Warren Buffett’s Berkshire Hathaway Inc.for 3 billion Swiss francs ($2.6 billion)to shore up capital depleted by record losses.
The investment may give Berkshire a stake of more than 20 percent as Swiss Re struggles to keep its AA credit rating.The reinsurer fell as much as 18 percent after posting a 2008 loss of about 1 billion francs and announcing plans to cut the dividend.The Zurich-based company also will disband its financial-markets unit and may seek more capital.
Chief Executive Officer Jacques Aigrain is abandoning his attempt to increase profit by trading securities such as credit-default swaps.The foray led to writedowns of 6 billion francs last year,depleted shareholder equity and took two-thirds off the insurer’s market value in 2008.Swiss Re became the world’s biggest reinsurer after buying GE Insurance Solutions in 2005 and now has only one third the market value of Munich Re.
“We are disappointed with our overall results,”Aigrain said in a statement.“Warren Buffett’s agreement to invest in Swiss Re is a testament to the strength of our franchise.”
Swiss Re fell 12.2 percent to 26.48 francs at 11:38 a.m.in Zurich,valuing the company at 9.4 billion francs.The stock has plunged 47 percent in 2009,making it the worst performer in the 35-member Bloomberg Europe 500 Insurance Index as investors anticipated the writedowns.
Selling Shares
While Swiss Re said it has more capital than regulators require,it needed at least 1.5 billion francs on Dec.31 to keep its AA credit rating.The company plans to get approval to sell as much as 2 billion francs of additional stock,it said.
Swiss Re’s shareholder equity was less than 20 billion francs as of Dec.31,down almost from 32 billion francs at the end of 2007,it said.
“We have seen a much,much larger movement in asset values than we anticipated,”Chief Financial Officer George Quinn told reporters on a conference call.“If we were to see further significant changes in asset values or a large natural catastrophe,that may deplete Swiss Re’s capital.”
Berkshire Hathaway’s latest investment comes in the form of convertible notes paying a 12 percent coupon,Swiss Re said.Berkshire can convert them to Swiss Re shares after three years at a price of 25 francs apiece or continue to receive “perpetual”payments of 12 percent a year.
‘Cautious View’
“The terms of the Berkshire capital raising indicate a cautious view on the potential for other risks in the balance sheet,”said Tim Dawson,an analyst at Helvea in Geneva who has a “neutral”rating on the company.“Clearly there were market concerns.”
Buffett bought 3 percent of Swiss Re in January 2008,ceding 20 percent of its property and casualty business to Berkshire Hathaway over five years to free up capital.
“I’m very impressed by Jacques Aigrain and his management team,”Buffett,78,said in the statement.
General Electric Co.and Goldman Sachs Group Inc.were among the companies that went to Buffett in the last year after the global credit crunch cut off their access to funding.
Buffett’s investment vehicle bought $5 billion of preferred stock in Goldman Sachs in September.It pays a 10 percent divided and can be converted to common stock at any time at a 10 percent premium.The Omaha,Nebraska-based company also received warrants to buy $5 billion of common stock at any time until 2013.
‘Derisking’
The Swiss company has been plagued by losses on contracts sold to protect clients against declines in fixed-income securities after the worst U.S.housing market since the Great Depression sparked a global credit crunch.
The company is now disbanding its financial markets unit as part of the “derisking”strategy,Swiss Re said.Remaining assets will be split between the asset-management division and a new “legacy”unit to hold the company’s credit-default swaps,which provide guarantees against corporate bond defaults.
Aigrain ramped up Swiss Re’s sales and trading of securities in 2006 and 2007,when the reinsurance business was trying to cope with stagnant premiums.While the strategy boosted profit in 2006,the credit crunch and rising bond defaults forced record writedowns in 2008.About a third of Swiss Re’s mark downs last year were tied to credit default swaps,it said.
The financial-markets unit cut 40 jobs worldwide between the end of 2007 and Oct.31,2008,Swiss Re said.It also eliminated 80 technology jobs.
The Swiss Exchange said yesterday it is probing what Swiss Re told analysts,investors and the press about its risks.Chairman Peter Forstmoser said in July 2008 he didn’t expect additional writedowns at Swiss Re,according to Handelszeitung.
