Warren Buffett says he is "delighted" to have an opportunity to increase Berkshire Hathaway's investment in Swiss Re by 3 billion Swiss francs, or about $2.6 billion.
Berkshire's cash infusion is seen as a vote of confidence in the troubled reinsurer, which is bolstering its capital position in an effort to save its credit rating.
As usual, however, Buffett will be well paid for his support. Berkshire is buying bonds that pay 12 percent a year. After three years, they're convertible into Swiss Re common at 25 francs a share.