Cigna, Berkshire Hathaway Strike $2B Reinsurance Deal

Law360, New York (February 4, 2013, 9:16 PM EST) -- A unit of Warren Buffett's Berkshire Hathaway Inc. will reinsure two of Cigna Corp.'s annuity businesses to the tune of $2.1 billion, the firms announced Monday.

Under the deal, Berkshire Hathaway Life Insurance Co. of Nebraska will reinsure Cigna's Run-off Guaranteed Minimum Death Benefits and Guaranteed Minimum Income Benefits, effective Monday. Cigna will pay for the deal with $1.8 billion in investments that support the run-off businesses, and another $300 million in tax benefits, it said in a statement.

In addition, Berkshire will assume all of...
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