Swiss Re loss in Q2

Swiss Re Americas, Armonk

 

Swiss Re lost nearly $360 million in the second quarter, but indicated it made substantial progress during the quarter in removing risk from its portfolio by terminating credit default swap contracts.

Swiss Re is based in Zurich, Switzerland and has its U.S. headquarters in Armonk, where it is among Westchester County”™s largest corporate employers with 750 workers at last report. The company is in the process of closing 14 of more than 70 offices worldwide, with the goal of cutting 10 percent of its work force or some 1,150 jobs.

The company attributed the second-quarter loss to mark-to-market losses on hedges for corporate bonds; impairments on securitized products; and U.S. accounting rules that require Swiss Re to record the effects of its credit spreads in certain financial liabilities.

Swiss Re”™s property-and-casualty insurance group had $940 million in operating income, an improvement over its results from the second quarter of 2008. The company”™s life and health insurance units had a slight loss in part due to the discontinuance of its variable annuity business, but the company said renewal activity has been strong. Swiss Re”™s specialty risk division has been hit by aviation and aerospace losses, with the company not immediately providing further details.