Swiss Re to repay Buffett

Swiss Re chairman Walter Kielholz said it plans to repay CHF3bn ($2.9bn) of investments from Warren Buffett’s Berkshire Hathaway instead of allowing Buffett to convert the bonds into stock, Bloomberg reports.

“We can’t give Buffett shares for 25 Swiss francs when they’re worth 45,” Kielholz said. “Shareholders would shoot me, with hot cheese at the least.”

Mergers

Kielholz said banking regulation will spur mergers and acquisitions among insurers as banks sell insurance units because they’ll become too expensive to operate. Swiss Re does not plan to buy primary insurance businesses.