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 described 2001 as a “record year for large losses”. The Zurich-based firm said the effects of September 11 affected several business lines and led to capital market falls that negatively affected investment performance. “The extraordinary nature of the event and the complexity of the losses involved has led to uncertainties and revision of loss estimates throughout the insurance industry,” said the company.
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."
More on Risk Management
Harvey Stein combines risk-neutral and real-world measures into risk methodology
ABSTRACT In this paper, we study the evolution over time of the correlation structure of equity returns by means of a filtered-network approach and use this to investigate persistency and recurrences...
Stays will extend to buy-side, repo, and securities lending, says BoE’s Gracie
Welcome to The Journal of Computational Finance's Online First Forum. Here you will find the latest peer reviewed, accepted papers before they are available in print. With Online First publication,...
Sign up for Risk.net email alerts
Sponsored video: MarketAxess
Sponsored video: Tradeweb
Multifonds talks to Custody Risk on being nominated for the Post-Trade Technology Vendor of the Year at the Custody Risk Awards 2014
Sponsored webinar: IBM Risk Analytics
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.