Swiss Re Completes Berkshire Hathaway Capital Arrangement

Loss-battered Swiss Re said shareholders at the company's annual meeting today voted approval for financial arrangements the company has made to secure a CHF 3 billion ($2.5 billion) lifeline from Berkshire Hathaway.

Shareholders meeting in Zurich approved creation of conditional capital by not more than 160 million shares to secure the necessary underlying shares for the convertible perpetual capital instrument to be issued to Berkshire Hathaway Inc.

The company reached out to Berkshire's head, billionaire Warren Buffett, for capital after sustaining a CHF 864 million ($736.3 million) loss.

Swiss Re last month replaced Chief Executive Officer Jacques Aigrain with Stefan Lippe, formerly deputy chief executive officer and chief operating officer. Monday it announced that Chairman Peter Forstmoser will resign May 1--one year earlier than planned--to be replaced by Vice Chairman and current Credit Suisse Chairman Walter B. Kielholz.

Chairman Forstmoser thanked shareholders for their trust and their continued support and told them that their "approval of the capital increase means that Swiss Re's financial strength will be further reinforced. This will allow us to continue to capture upcoming reinsurance market opportunities and to strengthen our core business even further."

Shareholders also approved:

o The annual report and the annual and consolidated financial statements for the 2008 financial year.

o A 2008 dividend of CHF 0.10 per share (8 cents).

o Discharge of the members of the board of directors and executive committee for the 2008 financial year.

o Creation of authorized capital by not more than 180 million shares. At this point in time, Swiss Re said it does not intend to conduct a rights issue.

Board members re-elected at the meeting for a three-year term were Jakob Baer and John R. Coomber. Shareholders re-elected PricewaterhouseCoopers AG, Zurich (PwC) as auditor for a term of office of one year.

The company said 1,869 shareholders, representing 54.85 percent of Swiss Re's voting shares, took part in this year's Ordinary General Meeting.

Mr. Forstmoser told the gathering, "After nine fascinating years as chairman of Swiss Re, I hand over to Walter B. Kielholz on 1 May. With his immense knowledge and experience in reinsurance, Walter is the best choice for Swiss Re in these difficult times. Together with Mathis Cabiallavetta, who will succeed Walter as vice chairman, they form a strong team in heading the board of directors."

Having served sixteen years on the board of directors of Swiss Re, Thomas W. Bechtler and B?n?dict G.F. Hentsch did not stand for re-election. Kaspar Villiger, who has been named chairman of UBS, resigned from the board effective today.