Germany’s Gerling Group has reportedly filed a request with the BAFin, the country’s financial services regulatory authorities, to transfer 200 million Euros ($221 million) to its reinsurance unit in order to increase its equity capital.
The report from Dow Jones Newswires noted that the company is seeking to transfer the funds from emergency cash reserves to Gerling Global Re in order to cover future losses. Gerling has indicated that it expects to post an overall loss of around 300 million Euros ($331.5 million) for 2002 -150 million Euros ($166 million) as a result of write downs in equity values, and around 110 million Euros ($121.5 million) from reinsurance claims.
The move comes after a great deal of comment raised by remarks in Warren Buffett’s letter to Berkshire Hathaway shareholders which alluded to a large reinsurer that wasn’t paying duly presented claims (See IJ Website March 11). According to the DJ report a spokeswoman for Buffett indicated that he would make no comment on the issue before the annual meeting of shareholders, scheduled for May 4.