Swiss Re stormed back into the black in the December quarter last year with a CHF403 million ($610.5 million) net profit compared with 2008’s net loss of CHF1.75 billion ($2.65 billion) for the corresponding period.

The world number two reinsurer’s net profit for the year was CHF506 million ($766.5 million) against the CHF864 million ($1.3 billion) loss 12 months earlier.

A relatively calm period for natural catastrophe losses helped, as did cost savings and a de-risking of the balance sheet.

CEO Stefan Lippe says the group’s stronger capital position has put it on track to pay back the CHF3 billion ($4.5 billion) capital boost it received from Berkshire Hathaway’s convertible note investment last year.

Berkshire Hathaway, controlled by CEO Warren Buffett, owns 3% of Swiss Re and holds a 20% share of its property/casualty business under a proportional reinsurance treaty.

Mr Buffett, the largest shareholder in number one reinsurer Munich Re, will own a 7% stake of that company if he exercises an option to buy 1.9% by March 11.