Swiss Re 'could pay back Berkshire Hathaway by June', analysts say
Swiss reinsurer could pay back Berkshire Hathaway loan back by June 2010, JP Morgan says.
Swiss Re could pay back its 3.6bn CHF loan from Berkshire Hathaway by as soon as June, analysts at JP Morgan have said.
"We believe Swiss Re is on track to have enough capital by June 2010 to be able to repay the Berkshire SF3.6bn perpetual with negligible dilution risk," analysts at the US investment bank said, noting that the deadline for the loan - a capital instrument injection- was due March 2011.
Berkshire Hathaway upped its quota share in Swiss Re at the start of 2009 because of the Swiss company's worries about some of its investments - which cost CEO Jacques Aigrain his job and shareholders billions.
Swiss Re might also have good news on ratings front, JP Morgan added.
"We believe too S&P could raise potentially its rating to 'A+/positive' from 'A+/stable' in August 2010 due to more stable operating results, which would be a signal in our view, ahead of Monte Carlo reinsurance conference, that Swiss could regain its 'AA-' rating in 2011.
In early trade on Wednesday Swiss Re shares were up 0.2 CHF at 52.2 CHF.
This story was originally published by Reinsurance
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