Zurich, Switzerland (GenevaLunch) - The world’s largest re-insurance company, Swiss Re, lost CHF1 billion in 2008, unaudited figures published 5 February shows. Shares immediately nose-dived 17% in Zurich trading. Swiss Re released its figures early after its shares fell in recent days.
The company says it is raising CHF3 billion through Warren Buffett’s US company Berkshire Hathaway to ensure it keeps its AA credit rating, although capital reserves remain higher than requirements, and, depending on market conditions, it may look to raise another CHF2 b. It is reducing its investment risks, the company says, noting that the core underwriting business is performing well but it was “undermined by investment activity.” According to the Financial Times Swiss Re “scrapped its financial markets activities following large writedowns on structured credit default swaps (CDS) contracts.”
Jacques Aigrain, Swiss Re’s CEO said in the company’s press release, “We are disappointed with our overall results in 2008, but ourcore business – Property & Casualty and Life & Health – is performing well.
Related:
“Swiss Re annonce une perte d’un milliard,” 5 February 2009, Le Temps, Fre
“Swiss Re turns to Buffett for new funding,” 5 February 2009, Financial Times
“Lausanne buffeted by rich man Warren,” 20 May 2008, GenevaLunch (visit to IMD)
This work by genevalunch.com is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported.
News story, GenevaLunch, 5 February 2009.
Filed under: Business
Tags: 2008 financial report, Business, reinsurance, Swiss Re, Warren Buffett
February 12th, 2009 at 9:33 am
[...] company, has left the company. Swiss Re announced the news 12 February, just days after the insurer reported an unexpected CHF1 billion loss for 2008. Aigrain, a former investment banker, joined the company in 2001 and became CEO in [...]