Swiss Re reports losses of CHF 381m

by Richard Kilner

Story link: Swiss Re reports losses of CHF 381m

Swiss Re has reported its financial results for Q2 2009, which include a net loss of CHF 381m.

In the same quarter of 2008 the firm made a net profit of CHF 564m, and in the first quarter of this year Swiss Re enjoyed a return to profitability with net income of CHF 150m.

The firm has stated that the loss was suffered despite solid earnings in its core businesses because the earnings were outweighed by mark-to-market losses on hedges and impairments.

Swiss Re has also managed to reduce the risk on its Legacy portfolio, with potential exposure as of March 2009 of CHF 13.9bn now down to less than CHF 1bn.

CEO Stefan Lippe described the core business as retaining strong underwriting results and solid earning power, and pointed out that the firm’s capital position has been enhanced, with excess capital at the AA level of CHF 4.5bn.