The US investor already owns 3 per cent of Swiss Re and its latest investment is pure Berkshire Hathaway. Though the US investor's portfolio has stakes in great all-American names in underwear (Fruit of the Loom), utilities, manufacturing and finance, its roots lie in insurance. This generates the premiums – Mr Buffett's famous “float” – used to fund his other investments. Last May, Mr Buffett toured Europe's family-run businesses in search of opportunities. Yet recent investments – $5bn in Goldman Sachs, $3bn in General Electric and now Swiss Re – suggest a continuing preference for businesses hit by the crisis but with strong franchises.

Mr Buffett's endorsement has helped with subsequent rights issues. Goldman raised $5bn and General Electric $12bn once he was on board. Still, his endorsement hardly comes cheap. Berkshire Hathaway will enjoy a handsome 12 per cent coupon on its Swiss Re “perpetual convertibles”. Furthermore, it is charging Swiss Re a SFr2bn one-off premium for a separate insurance contract. That is the sweetest melody to Mr Buffett, astride his hog.