Read Larry Connors' blog – Short Term Trading Strategies
The loss was Sf381m ($359m) in the second quarter after net income of Sf564m a year earlier, the Zurich- based company said. That missed the median estimate for a Sf134m profit of eight analysts.
Swiss Re returned to profit in the first quarter after a record loss of Sf1,75bn in the last three months of last year. The company, which is cutting more than a 1000 jobs this year after turning to billionaire investor Warren Buffett for a Sf3bn injection, expected to generate Sf1bn in capital over the next 12 months from cutting investment portfolio risk.
"The bottom line is disappointing," said Stefan Schuermann, a Zurich-based analyst at Vontobel Securities. "They were weak in life, partially due to one-offs."
The reinsurer's life and health business posted an operating loss of Sf10m after a profit of Sf535m a year earlier. While Swiss Re focused on "de-risking" its Legacy portfolio, cutting its exposure to credit default swap contracts by 94% to Sf800m during the quarter, it said "market volatility" remained a concern.
"The financial market volatility and the shift towards lower-risk investments, which allowed Swiss Re to reduce its exposures significantly, may adversely impact future earnings," Swiss Re said .
It said it had increased its capital strength to an AA level and now had excess capital of Sf4,5bn. The excess capital was a "step forward" for the reinsurer to regain its AA rating, said Schuermann.
Swiss Re said last month it expected to have enough excess capital at the end of this year to be able to repay Buffett in cash rather than shares in the contractual period of March 2011 until 2012.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
