Swiss Re reports Cdn$1.484 billion loss quarter-over-quarter

Swiss Re reported a net loss of CHF 304 million (about Cdn$301 million) for 2008 Q3. The company reported a profit of CHF1.469 billion (about Cdn$1.183 billion) in the same period of last year. Earnings for the first nine months of the year were CHF 884 million (about Cdn$876 million), compared to a profit of CHF3.992 billion (about Cdn$3.215 billion) for the first nine months of 2007.The company’s combined ratio was 99.8% for the quarter, compared to 83.4% in 2007 Q3.In September, Swiss Re estimated its net claims for Hurricane Ike to be US$250 million. That estimate has been updated to US$315 million “due to indications of higher insured claims in the U.S. Midwest, and offshore energy,” bringing its aggregated net claims for hurricanes Gustav and Ike to be approximately US$365 million, a company statement says. The company’s unrealized market-to-market loss on the structured credit default swaps was CHF289 million (about Cdn$286.65 million) for the quarter. Swiss Re in 2007 Q3 announced a CHF7.75-billion (about a Cdn$7.69-billion) share buy-back programme in an effort to reallocate capital. “As a consequence of the high volatility in the financial markets and a significant increase in client demand for reinsurance, Swiss Re has suspended its share buy-back programme,” the company said in its statement. At the end of Oct. 2008, the group had completed 51.2% of the buy-back programme. “Swiss Re can still meet the completion of the programme by April 2010, but this will depend on some stability returning to the capital markets.”