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General Category => Berkshire Hathaway => Topic started by: wescobrk on February 04, 2013, 04:15:48 PM

Title: Berkshire gets 1.8 billion from Cigna in exchange for 4 billion in liabilities
Post by: wescobrk on February 04, 2013, 04:15:48 PM
Can't find the release but saw a flash on bloomberg
Title: Re: Berkshire gets 1.8 billion from Cigna in exchange for 4 billion in liabilities
Post by: treasurehunt on February 04, 2013, 04:52:51 PM
Here's the press release from Cigna: http://www.businesswire.com/news/home/20130204006406/en/Cigna-Announces-Transaction-Exit-Run-off-Operations

My reading of the press release is that Berkshire gets 1.8 billion in investments and some cash in return for assuming up to 4 billion in liabilities. 4 billion is the cap; actual liabilities could turn out to be less. I couldn't quite figure out exactly how much cash Berkshire is getting. Perhaps as much as 500 million?
Title: Re: Berkshire gets 1.8 billion from Cigna in exchange for 4 billion in liabilities
Post by: longinvestor on February 04, 2013, 05:55:58 PM
Here's the press release from Cigna: http://www.businesswire.com/news/home/20130204006406/en/Cigna-Announces-Transaction-Exit-Run-off-Operations

My reading of the press release is that Berkshire gets 1.8 billion in investments and some cash in return for assuming up to 4 billion in liabilities. 4 billion is the cap; actual liabilities could turn out to be less. I couldn't quite figure out exactly how much cash Berkshire is getting. Perhaps as much as 500 million?

Surely looks like a Ajit Jain deal, similar to Lloyd's. That was for $14B.
Title: Re: Berkshire gets 1.8 billion from Cigna in exchange for 4 billion in liabilities
Post by: LC on February 04, 2013, 06:09:15 PM
I couldn't quite figure out exactly how much cash Berkshire is getting. Perhaps as much as 500 million?
"Cigna will fund this transaction with an incremental $100 million of parent company cash, approximately $1.8 billion of investment assets supporting the run-off businesses, and an estimated $300 million tax benefit associated with the transaction."