ZURICH (Reuters) – Swiss Re has settled a dispute with Berkshire Hathaway over a 2010 life reinsurance deal and will receive a $610 million payment from U.S. tycoon Warren Buffett's company, the Swiss reinsurer said on Thursday.

Under the original January 2010 deal, Swiss Re agreed to transfer a U.S. life reinsurance contract to Berkshire for 1.3 billion Swiss francs ($1.36 billion), allowing it to reinvest capital more profitably elsewhere.

That allowed Buffett's Berkshire to pocket premiums payable under the contract, while taking responsibility for paying up to $1.5 billion in potential claims.

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