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Swiss Re falls into red as volatile markets damage bond portfolio
ZURICH reinsurance giant Swiss Re posted a shock second-quarter net loss yesterday following heavy losses on its bond investments, and warned the difficult market conditions will continue to hurt.
The firm said it made a net loss of Sfr381m (£212m), compared with a profit of Sfr564m for the same period a year earlier.
The loss at Swiss Re related to corporate bonds and totalled Sfr1.1bn.
But the world’s second-biggest reinsurer said it has boosted its chances of repaying a costly investment made by Warren Buffett’s investment firm Berkshire Hathaway, after boosting its reserves to Sfr4.5bn.
Earlier this year, Swiss Re said it would cut 10 per cent of its workforce, or 1,150 jobs, as it seeks to reduce costs.