Cigna Inc. and Warren Buffett's Berkshire Hathaway Inc struck a $2.2 billion deal in which Berkshire will reinsure Cigna's risk related to future claims for two annuity businesses it previously exited. The move will reduce risk for Cigna by eliminating the possibility of a capital call as well as volatility, it said, adding that it had exposure for up to $4 billion in future claims.Cigna sells health care insurance and disability, life and accident insurance.It was a reinsurer for two closed annuity businesses, collecting a premium in return for assuming the risk of the difference between the minimum benefit and the portfolio value. There have been no new policies written since 2000 and the business has been in run-off since then.Berkshire will receive $1.8 billion in assets related to the businesses and $400 million, including $100 million in cash and another $300 million funded from a tax benefit Cigna will receive.
Berkshire Hathaway Inc. (Berkshire) is a holding company owning subsidiaries engaged in a number of diverse business activities. Shares of BRK-A fell by 1.41% or $-2076.1875/share to $145010.00. In the past year, the shares have traded as low as $116850.00 and as high as $148562.00. On average, 77113 shares of BRK-A exchange hands on a given day and today's volume is recorded at 273.
Berkshire Hathaway Inc. (Berkshire) is a holding company owning subsidiaries engaged in a number of diverse business activities. Shares of BRK-B fell by 1.52% or $-1.49/share to $96.51. In the past year, the shares have traded as low as $77.89 and as high as $99.00. On average, 4711380 shares of BRK-B exchange hands on a given day and today's volume is recorded at 4222662.
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