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Berkshire Hathaway, CaixaBank Agree to Reinsurance Deal

I fail to see how this has anything to do with taxation, government spending or abortion. Are you sure you have the right board?

OK, if we must talk about Berkshire, how do we explain this:

—Berkshire Hathaway Inc. BRKB -0.34% will pay CaixaBank SA CABK.MC +0.78% €600 million ($778.7 million) for the future cash flow from a portfolio of life insurance policies, the Barcelona-based bank said Friday...

CaixaBank—a lender that, like many of its Spanish competitors, has large insurance operations—said the reinsurance agreement will result in a one-off gain of €524 million for the bank, reinforcing its capital core.

To me, booking a gain of €524 because you have just gotten €600 in exchange for future cash flows implies that those future cash flows were only valued at €76 million, before the deal. How can that make sense?

Regards, DTM
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