Comments from billionaire investor and reinsurance company owner Warren Buffett have created huge waves for Germany’s Gerling Group. In his annual letter to Berkshire Hathaway shareholders Mr Buffett said a large reinsurer – he didn’t mention which – wasn’t paying duly presented claims.

“This company owes many billion of dollars to hundreds of primary insurers who now face massive write-offs,” he said.

Since then Gerling has apparently made moves to transfer $396 million to its reinsurance unit to increase its equity capital, by filing a request with Germany’s financial services regulatory authorities.

The company encountered billions of dollars in losses as a result of September 11 and an increase in asbestos lawsuits, and is expected to record a loss of $539 million for 2002. Its Australian operations are also in run-off.