| | Reinsurer hit by hurricane force |
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CreateTime:2008-11-05 Editor:liaoyan
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SWISS Reinsurance Co yesterday posted a net loss of 304 million Swiss francs (US$258 million) for the third quarter due to hurricanes Gustav and Ike, losses at its life and health insurance business and markdowns on assets from the global financial turmoil.
Analysts had expected the world's second-largest reinsurer to record a net profit of about 340 million francs. Net loss per share was 0.93 francs, compared with a profit per share of 4.20 francs during the same period last year.
Swiss Re said it would suspend its share buyback program as a result of ongoing market volatility, but believes it can still complete its planned 7.75-billion-franc repurchase by April 2010.
The Zurich-based company said it lost 76 million francs due to bad investments in the three months to September. This compares with a profit of 1.75 billion francs during the third quarter of 2007.
In its core businesses, Swiss Re took in 3.61 billion francs in premiums from property and casualty insurance, and 2.92 billion francs from life and health insurance, down from 4.78 billion francs and 3.04 billion francs.
Operating income from property and casualty was 99 million francs, while the life and health business recorded an operating loss of 614 million francs.
Swiss Re estimates that total claims for hurricanes Ike and Gustav will reach US$365 million.
Swiss Re's shares fell 6 percent in Zurich trading.
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