Gerling, the cash-strapped German insurer, said yesterday it was seeking regulatory approval to inject Ђ200m (US$220m) in emergency funds into its ailing reinsurance unit. The funds would be transferred from the group's equalisation reserves, an emergency cash pile to cover exceptional losses, to reinsurance arm Gerling Global Re, officials said.
Gerling, under pressure from Deutsche Bank, wants to find a buyer for its reinsurance operations to ensure the survival of its core industrial and credit insurance businesses.
The move comes amid mounting pressure on the group, which was rocked by reports this week that it had stopped paying billions of dollars in claims.
Warren Buffett, who controls Berkshire Hathaway, the world's third largest reinsurer, wrote in his annual letter to shareholders that one reinsurer "had all but ceased paying claims". Analysts reckoned Mr Buffett was referring to Gerling Global Re, Germany's fourth biggest reinsurer.
