Billionaire investor Warren Buffett's company National Indemnity is to insure a lottery with a $1bn top prize.
But a payout is unlikely.
Grab.com paid a premium of “several million dollars” to secure the cover which is compulsory for lotteries under New York State law.
National Indemnity will have to pay up if any players manage to match seven numbers from 77 in the draw. Even if all those eligible to play in the UK and the US enter, the odds against the top prize being scooped are about 1,000 to one.
Anyone who did manage to match seven numbers would have a choice of taking $175m immediately or receiving the money in stages, waiting 40 years for the bulk of the money.
Buffett is likely to make money on the deal as it gets a small payment from Grab.com for every ticket sold.
