Berkshire gets 1.8 billion from Cigna in exchange for 4 billion in liabilities

[wescobrk]

Can't find the release but saw a flash on bloomberg

[treasurehunt]

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?

[Guest longinvestor]

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.

[LC]

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."