Third-quarter loss reported 304 million Swiss francs reinsurance market expectations are far less performance

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The world's second largest reinsurance companies - Swiss Re (Swiss Reinsurance Co.) Yesterday announced a six-year first-quarter loss. As the credit derivatives losses drag, in the third quarter of this year, the company reported a loss of CHF 304 million (about 259,000,000 U.S. dollars).



According to Swiss Re announced yesterday the Quarterly Bulletin, in the third quarter the company lost a total of 304 million Swiss francs, while the same period last year profit of 1.47 billion Swiss francs. Analysts previously forecast profit will be 150,000,000 francs. Portfolio, as well as claims for hurricane damage is the main reason for the current quarter, but Switzerland Reinsurance in 2008 before the 9 months net operating income of 884 million Swiss francs.

Company earnings per share for the third quarter -0.93 Swiss franc in 2008 in the first nine months to 2.66 Swiss francs. The third quarter rate of return on equity is equivalent to an annual rate of -2.7% in 2008 in the first 9 months to 6.4 percent. As the company to implement a prudent investment strategy, in the third quarter of shareholder equity ratio declined quarter of 6% to 24.1 billion Swiss francs, and as of the end of September from the book value per share of 77.65 Swiss francs by the end of June dropped to a modest 74.16 Swiss francs.

Swiss Re said the company balance sheet is still healthy capital adequacy ratio remained at a relatively high level. Hurricane paid expenses for the settlement of 365,000,000 U.S. dollars, and structured products on the scale of investment to 39.9 billion Swiss francs, compared to 6 at the end of the 38.9 billion Swiss francs increased.

In addition, Swiss Re in the third quarter and the provision of credit default swaps (credit default swaps) aspects of 289 million Swiss francs by total assets, which as of end of the third quarter of this year, the market value of securities losses decreased by more than last year's level, reaching The Swiss franc 2,810,000,000. The company said Chief Executive Officer Jacques Aigrain, as a result of the deterioration of the global financial crisis, the company has increased the company's credit risk hedge positions.

"Swiss Re reported a bad number." Kepler Capital Management in Zurich analyst Fabrizio Croce said this, and Swiss Re's stock rating cut to "reduce." He said: "This is just the tip of the iceberg, the current situation is only dark cloud-top pressure, and may be a tempest in the future."

In addition, Swiss Re said yesterday that as a result of a high degree of volatility in financial markets, as well as customer demand for reinsurance, has been suspended stock repurchase program. At the end of October, the group has completed a 7.75 billion Swiss franc share buy-back program 51.2 percent. The company reiterated that is still attainable in the April 2010 completion of the share buy-back program goals, but it will depend on the restoration of stability in the capital markets, property, as well as accident insurance and health insurance life insurance sector business opportunities.

In the Quarterly Bulletin was published, Swiss Re shares after yesterday's drop was 7.4 percent to 47 Swiss francs, while the share price this year has shrunk by about 37% of the total market value fell to 17.9 billion Swiss francs.