BUFFETT MAKES DEAL WITH VHI – The Irish Independent reports that health insurer VHI has pulled off a massive coup by doing a €700m deal with the world's most successful investor, Warren Buffett, that will save taxpayers up to €90m. The newspaper says that the deal struck between State-owned VHI and the billionaire is one of the biggest insurance deals done in Europe this year. It is understood that he personally signed the mammoth contract with VHI. The investor has never done a deal in Ireland, and is notoriously reluctant to do business outside of the US. His Berkshire Hathaway holding company will take over some of the risks of VHI in what is known as a re-insurance deal. The agreement with the third-richest man in the world involves Berkshire Hathaway insuring some €700m of VHI claims. Effectively, some of VHI's health insurance claims are being laid-off with Berkshire, though customers will still deal with VHI. The other three health insurers in the market all have re-insurance deals in place.
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GOVERNMENT SEEKS EXTRA MONEY FROM ESB - The Government is seeking an extra €65 million dividend from the ESB on top of the €74 million that the State-owned energy group recently paid to the Exchequer, according to The Irish Times. The move is part of an overall plan to raise an extra €100 million in such payments from State companies that was agreed in Budget 2013. The ESB is being asked to cover two thirds of this sum as it is the largest and most profitable of those businesses, but the Government intends asking the others to contribute as well. The company confirmed yesterday that the Minister for Communications, Energy and Natural Resources, Pat Rabbitte, wrote to it this week asking it to pay the additional dividend of €65 million this year. Following its annual general meeting last month, the group paid a final dividend of €74.4 million to the Exchequer. It has agreed to make a special payment of €400 million next year, pending the sale of its stakes in power plants in Britain and Spain.
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PROFITS RISE AT PORT OF CORK – The Irish Examiner reports that the Port of Cork saw its profits before tax rise by more than €150,000 last year. This was driven by an increase in the volume of goods passing through the port, with 9.05 million tonnes passing through last year compared to 8.8 million in 2011. Turnover at the port only increased marginally to €21.8m but a reduction in costs saw profit before taxation rise to €1.36m. Since incorporation in 1997 the Port of Cork has seen investment of €103m, according to the newspaper. Last year the port completed a new compound in Ringaskiddy to accommodate a new Maersk transatlantic service which commenced in January 2012. This is the first Lift-on, Lift-off deep sea service in Ireland.
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GSK CHINA PROBE INTENSIFIES – Britain has called on China to accelerate plans to share information on its criminal investigation into pharmaceutical companies like GSK, reports The Financial Times. The move is a sign of a growing drive for co-operation between the Asian giant and western countries when it comes to multi-national investigations. A legal assistance treaty has been agreed between China and Britain but has not yet been signed. This would allow for requests between countries for evidence, documents or individuals in relation to investigations. British officials are understood to have recently travelled to China to push for swift ratification of the deal.
