Reinsurance group Swiss Re predicts billion dollar losses

0 Comments | AFP, November, 2007

ZURICH (AFP) — The world's largest reinsurance group, Swiss Re, predicted Monday losses of 1.2 billion Swiss francs (1.07 billion dollars, 732 million euros) due to the US subprime mortgage crisis.

"Following completion of its October performance reporting, Swiss Re has to report a CHF 1.2 billion mark-to-market loss, or CHF 981 million after tax," a statement from the Zurich-based company said.

Swiss Re said its sub-prime securities had been written down to 62 percent of their starting value.

"The excellent performance of the Group throughout the year to date means that Swiss Re is able to absorb the extraordinary financial market developments in October," said CEO Jacques Aigrain.

"Despite this, it is clear that further improvement and...