Swiss Re warns on losses
Swiss Re, one of the world’s largest reinsurance groups, yesterday warned investors it expects to report a Sfr200 million ($115 million) loss when earnings are released in April. But the firm’s management will recommend an unchanged dividend of Sfr2.5 per share, said Swiss Re.
Swiss Re also blamed other events for last year’s large losses, including the collapse of Enron and the tropical storm Allison. Swiss Re said limited new capital entered the market relative to losses, but it reported increased demand for reinsurance cover. The company reduced its future return on investment target from 7% to 6.7%.
The warning comes just a few days after Swiss Re called on governments to form public/private partnerships to tackle future terrorism insurance. Swiss Re said: “Terrorism risks meet fewer of the important criteria of insurability, particularly as it is impossible to accurately assess the probability and severity of terrorist attacks."
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