Swiss Re Q1 profits down 53%
by David Masters
Story link: Swiss Re Q1 profits down 53%
Switzerland-based insurance group Swiss Re has reported its results for the first quarter, with profits down 53% on year and over 25% lower than analyst predictions.
The group announced quarterly profits of 624 million Swiss francs (US$594 million), compared to profits of 1.33 billion francs for the first quarter of 2007.
Analysts had predicted that profits would be lower – at around 880 million francs, but had not expected such a significant drop.
Swiss Re acts as an insurer for insurance companies, and so has been hit particularly hard by the credit crisis.
In November 2007 the group had to write down 1.2 billion francs; the first quarter of 2008 saw further write downs of 819 million francs, bringing total write-downs to above 2 billion francs.
Share prices fell 4.8% yesterday as Swiss Re announced predictions of further write downs of around 200 million francs.
Despite the results, CEO Jacques Igrain remains positive. He says that the company’s capital position is strong, and that its insurance portfolio is sound.