Zurich time on May 6, Swiss Re (referred to as "the Swiss again") released a report of the first quarter of 2008, said the first quarter of the net proceeds of 624 million Swiss francs, up 53 percent reduction; earnings per share fell 52 percent, to 1.84 Swiss francs; net investment losses -4 billion Swiss francs, while profit in 2007 compared to 800 million Swiss francs.
Rui again that the devaluation of the dollar against the Swiss franc, according to market value adjustments on the investment portfolio have an impact, and continue to repurchase shares, equity fell to 27.8 billion Swiss francs, and December 31, 2007 compared to a decrease of 13 percent. In the equity yield of 8.5 per cent, while in the first quarter of 2007 of the equity yield of 17.1 percent, down still more than half.
As at end of the first quarter, the Swiss to repurchase up to 3.26 billion Swiss francs of shares, has completed a total of 7.75 billion Swiss francs share buyback target of 43%, book value per share fell 9 percent, to 83.26 Swiss francs. The report said, net income decrease is attributable to the continued financial market turmoil, and from November 2007 structural credit default swaps the additional loss (at current market prices adjusted) due to 819 million Swiss francs.
Rui further said that financial markets business has brought 1.4 billion Swiss francs in operating earnings. And the loss of 819 million Swiss francs is being liquidated, the Group current and future will continue to be subject to fluctuations in the value of the securities market, it is estimated that in April there will be further loss of 200 million Swiss francs. Remove structural credit default swaps market value arising from the adjustment of losses, the annual investment rate of return of 5.8 percent, compared with the same period last year increased by 0.4 percentage points.
Quarterly Bulletin, Switzerland to the first quarter of the life and health operating earnings of 449 million Swiss francs, with exceptionally strong first quarter of 2007 compared to a decrease of 45 percent. But the Swiss to the long-term rapid growth in life insurance and variable annuity products such as the development of new businesses are optimistic about the potential and optimistic about its medical insurance business in Asia, especially India and China market.
Property and accident insurance, the Swiss were recorded in the first quarter to 1.3 billion Swiss francs in operating earnings than the first quarter of 2007 decreased 6 percent, an integrated payment rate by 3.1 percentage point increase of 96.9 percent. Swiss again, mainly due to higher human losses and lower revenue premiums of the Property & Casualty business affected.
However, early in 2008 to face the Swiss property insurance and accident insurance market environment there are still challenges.
January renewal quarter of this year, the Swiss again almost all property and casualty segment there are signs of weakness. January renewal of the business accounts for the traditional Swiss Re contract portfolio to 69 percent in the entire portfolio in the traditional agreement, the renewal of the premium business dropped by 12 percent, including the slight decrease rate of 3% of total premiums Reduced to 8.8 billion Swiss francs.
According to Rui said, in January 2008, with the Swiss Buffett's Berkshire Hathaway (Berkshire Hathaway) reached a significant percentage of reinsurance agreements, which transfer to the new 20% And renewal by the property insurance and accident insurance business, which can increase the degree of operating leverage. According to the agreement, the latter including reinsurance commissions paid to the Swiss to the long-term acquisition costs and 14 percent of the reinsurance commissions.
Switzerland to the interpretation of this is that the agreement to the Swiss to provide protection and decrease the flexibility of up to allow companies to further improve capital management capabilities. Switzerland is expected to again, based on business cycle changes in the future, the agreement will yield equity and earnings per share ranging from a level of the positive impact.
But a person familiar with the re-insurance, that has made the move, according to origin of the crisis, the Swiss capital Zhaxian further difficulties, "will have to get the hand over of operations to 1 / 5."
It is worth mentioning that the 819 million Swiss francs to compensate for the structural loss of credit default swaps, Swiss re-sold in the quarter in the centre of London's landmark office buildings, the honour of the 268 million Swiss francs capital gains. Even as London's second largest city buildings.
In addition, the Bulletin also show that by the end of 2008 3, Rui further violations of the credit risk (a loss, according to) continue to expose, the method of measuring stress tests, before the hair from the risk of 3.1 billion Swiss francs to reduce the risk of the net 28 Billion Swiss francs.
Swiss CEO Jacques Aigrain again (Jacques Aigrain), said: "Despite the turbulence in financial markets continues, we are still on the profitability of the Group are confident that we have the ability to maximize shareholder returns.'s Capital in good condition, and Insurance-related asset portfolio sound. Despite the challenges, but we have prepared for, will not deviate from our underwriting quality, prudent risk selection, and the realization of economic profit growth in the full focus.
"And Swiss Re to achieve the current earnings per share growth of 10% and return on equity rate of 14% of the objectives remain unchanged." Aigrain said.
Rui again that the devaluation of the dollar against the Swiss franc, according to market value adjustments on the investment portfolio have an impact, and continue to repurchase shares, equity fell to 27.8 billion Swiss francs, and December 31, 2007 compared to a decrease of 13 percent. In the equity yield of 8.5 per cent, while in the first quarter of 2007 of the equity yield of 17.1 percent, down still more than half.
As at end of the first quarter, the Swiss to repurchase up to 3.26 billion Swiss francs of shares, has completed a total of 7.75 billion Swiss francs share buyback target of 43%, book value per share fell 9 percent, to 83.26 Swiss francs. The report said, net income decrease is attributable to the continued financial market turmoil, and from November 2007 structural credit default swaps the additional loss (at current market prices adjusted) due to 819 million Swiss francs.
Rui further said that financial markets business has brought 1.4 billion Swiss francs in operating earnings. And the loss of 819 million Swiss francs is being liquidated, the Group current and future will continue to be subject to fluctuations in the value of the securities market, it is estimated that in April there will be further loss of 200 million Swiss francs. Remove structural credit default swaps market value arising from the adjustment of losses, the annual investment rate of return of 5.8 percent, compared with the same period last year increased by 0.4 percentage points.
Quarterly Bulletin, Switzerland to the first quarter of the life and health operating earnings of 449 million Swiss francs, with exceptionally strong first quarter of 2007 compared to a decrease of 45 percent. But the Swiss to the long-term rapid growth in life insurance and variable annuity products such as the development of new businesses are optimistic about the potential and optimistic about its medical insurance business in Asia, especially India and China market.
Property and accident insurance, the Swiss were recorded in the first quarter to 1.3 billion Swiss francs in operating earnings than the first quarter of 2007 decreased 6 percent, an integrated payment rate by 3.1 percentage point increase of 96.9 percent. Swiss again, mainly due to higher human losses and lower revenue premiums of the Property & Casualty business affected.
However, early in 2008 to face the Swiss property insurance and accident insurance market environment there are still challenges.
January renewal quarter of this year, the Swiss again almost all property and casualty segment there are signs of weakness. January renewal of the business accounts for the traditional Swiss Re contract portfolio to 69 percent in the entire portfolio in the traditional agreement, the renewal of the premium business dropped by 12 percent, including the slight decrease rate of 3% of total premiums Reduced to 8.8 billion Swiss francs.
According to Rui said, in January 2008, with the Swiss Buffett's Berkshire Hathaway (Berkshire Hathaway) reached a significant percentage of reinsurance agreements, which transfer to the new 20% And renewal by the property insurance and accident insurance business, which can increase the degree of operating leverage. According to the agreement, the latter including reinsurance commissions paid to the Swiss to the long-term acquisition costs and 14 percent of the reinsurance commissions.
Switzerland to the interpretation of this is that the agreement to the Swiss to provide protection and decrease the flexibility of up to allow companies to further improve capital management capabilities. Switzerland is expected to again, based on business cycle changes in the future, the agreement will yield equity and earnings per share ranging from a level of the positive impact.
But a person familiar with the re-insurance, that has made the move, according to origin of the crisis, the Swiss capital Zhaxian further difficulties, "will have to get the hand over of operations to 1 / 5."
It is worth mentioning that the 819 million Swiss francs to compensate for the structural loss of credit default swaps, Swiss re-sold in the quarter in the centre of London's landmark office buildings, the honour of the 268 million Swiss francs capital gains. Even as London's second largest city buildings.
In addition, the Bulletin also show that by the end of 2008 3, Rui further violations of the credit risk (a loss, according to) continue to expose, the method of measuring stress tests, before the hair from the risk of 3.1 billion Swiss francs to reduce the risk of the net 28 Billion Swiss francs.
Swiss CEO Jacques Aigrain again (Jacques Aigrain), said: "Despite the turbulence in financial markets continues, we are still on the profitability of the Group are confident that we have the ability to maximize shareholder returns.'s Capital in good condition, and Insurance-related asset portfolio sound. Despite the challenges, but we have prepared for, will not deviate from our underwriting quality, prudent risk selection, and the realization of economic profit growth in the full focus.
"And Swiss Re to achieve the current earnings per share growth of 10% and return on equity rate of 14% of the objectives remain unchanged." Aigrain said.
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