Well-known US investor Warren Buffett is poised to take a big stake in the world's biggest reinsurer, Swiss Re, the firm said today as it warned of massive losses and sought to prevent a downgrade of its credit rating.
Swiss Re said it expected to post net losses of one billion Swiss francs (€672m) in 2008 and turned to Buffett's investment vehicle Berkshire Hathaway for three billion francs.
Buffett could hold 'over 20%' of the reinsurer under certain conditions, said Swiss Re chief financial officer George Quinn. Berkshire Hathaway early last year took a 3% stake in Swiss Re for an undisclosed sum.
The reinsurer said another two billion Swiss francs may be raised from shareholders to prevent a downgrade of the reinsurer's current credit rating.
