ZURICH (Dow Jones) – Swiss Reinsurer Swiss Re in fiscal 2009 due to good results in its core business back in the black writing. That the Shareholders’ earnings climbed to the equivalent of 506 million CHF (: 345.3 Million), compared with a loss of CHF 864 million in the previous year, as the Zurich, Swiss Re Group announced on Thursday.
However, adjustments were of C $ 2 billion and Valuation losses of 1.9 billion CHF affects the outcome. The Board of Directors proposes a dividend increase to 1 (0.10) CHF.
Within a year, shareholders’ equity was at 26.2 (20.5) billion Swiss francs increased. Return on equity rose to the information according to 2.3% from minus 3.4% in late 2008. In addition, the excess capital to be needed at the end of the rating of an AA Level to more than C $ 9 billion increase.
The Business Property & Casualty " increased its operating profit by 39% to 3.8 billion Swiss francs. The division "Life & Health" to put. They recorded an operating profit of 746 (697) million to CHF. In the area of "asset management" fell however, 2009, the investment return to 1.8% from 4.7% last year. Mentioned as a reason Swiss Re, the shift in portfolio composition towards investments with lower risk and shorter duration.
Thus, the reinsurer in the past year have about the Risks in legacy portfolio "significantly" reduced. Legacy of 2009 had achieved operating income of CHF 139 million compared with a loss of CHF 5.9 billion a year earlier. Even in the Financial guaranty reinsurance (FG Re) is the exposure to significant risk in the nominal volume been reduced from C $ 9.2 billion.
For the fourth quarter was one of the reinsurers Profit of 403 million Swiss francs. In the same period last year had at this point still a deficit of 1.7 billion CHF admitted to book. Analysts had the Results only at CHF 400 million times.
Stefan Lippe, president of the Board of Swiss Re, was satisfied with the numbers and is optimistic about the future. Given the shift in their Sighted portfolio composition and in view of the lower interest rates, Swiss Re through the cycle return on equity of 12%. In the fourth quarter stood at 7%. Before the financial crisis, Swiss Re had 14% Target output.
Despite the improved numbers, the Swiss want their money in Comprehensive perspective. By the end of the year they plan their savings target of 400 million To reach CHF.
Website: www.swissre.com DJG / ebb / jhe Visit our website http://www.dowjones.de
(END) Dow Jones Newswires
February 18, 2010 02:11 ET (07:11 GMT)
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