Performance of early warning, the global insurance giant entangled with the case itself there is no guarantee
By the United States, loan-to-crisis, the global insurance giant who has been Jiang Li's annual "report card" this year looks a bit bleak. The published annual report of the major risk appears to Europe and the United States over the profitability of the insurance giants have been varying degrees of weakening.
Risk to earnings deficit soared
From the loss of credit underwriting activities, is the global insurance giant's ability to have an impact on earnings. Swiss Re insurance report shows that, in 2007 than 2006 net income fell 9 percent to 42 billion Swiss francs addition, due to take 1.2 billion U.S. dollars of credit losses, Swiss Re insurance in 2007 fourth-quarter profit fell as much as 87 percent.
Swiss Re is not only on the last weekend, the world's largest insurer American International Group (AIG) of the annual report revealed that the syndicate 2007 fourth-quarter loss of 5.29 billion U.S. dollars, for 89 to set up the largest single quarter of "deficit" Record. The 2006 fourth-quarter earnings of AIG's 3.44 billion U.S. dollars.
Credit asset-backed securities (ABS) of trading losses also affected Germany's largest insurer Allianz Group's investment banking business. Allianz Group's report, the Group last year, at least in the ABS transaction losses 1.3 billion euros, making the cost of investment banking business from the 2006 yield of 79.7 percent rose to 89 percent. In addition, the UK's largest insurer Aviva has announced that the company's 2007 profit fell about 37 percent.
The market for the crisis more pessimistic. Some analysts think that, including AIG, the insurer's loss is only a microcosm of the future may see more problems. Swiss Re insurance in the February report pointed out that the structural credit default swaps market price adjustment with the loss of value has reached 240 million Swiss francs. In addition, the report also predicted that the next group in the securities market will experience further losses.
The insurance giant lawsuit
Credit crisis of the financial deficit at the same time, even the hidden crisis exposed, makes the case entangled with the insurance giant. Swiss Re insurance issued earlier in the financial report also confirmed that a Swiss Re allegations of securities class action-has been the southern part of the New York federal court admissibility. The defendants in the pleadings, the company's executives was accused in some structural and credit default swaps with the loss of market value adjustments, issued false and misleading statements. Swiss Re insurance lawsuit accusing some of its internal staff and executives violated U.S. securities law, in particular its included in the two companies could bring huge risks to the credit default swaps transactions, were not disclosed.
Previously, the U.S. Justice Department announcement said that General Re four former AIG executives and a former head convicted on charges of improper conspiracy, securities fraud, mail fraud and forged documents to the U.S. Securities and Exchange Commission. U.S. Justice Department's announcement shows that from 2000 to 2001, General Re and AIG have reached a fraudulent insurance transactions, so that the latter inflated loss reserve 500 million U.S. dollars to mislead analysts and investors overestimate the AIG operating conditions And raise the company stock. Notice that this partnership is an act of fraud.
By the United States, loan-to-crisis, the global insurance giant who has been Jiang Li's annual "report card" this year looks a bit bleak. The published annual report of the major risk appears to Europe and the United States over the profitability of the insurance giants have been varying degrees of weakening.
Risk to earnings deficit soared
From the loss of credit underwriting activities, is the global insurance giant's ability to have an impact on earnings. Swiss Re insurance report shows that, in 2007 than 2006 net income fell 9 percent to 42 billion Swiss francs addition, due to take 1.2 billion U.S. dollars of credit losses, Swiss Re insurance in 2007 fourth-quarter profit fell as much as 87 percent.
Swiss Re is not only on the last weekend, the world's largest insurer American International Group (AIG) of the annual report revealed that the syndicate 2007 fourth-quarter loss of 5.29 billion U.S. dollars, for 89 to set up the largest single quarter of "deficit" Record. The 2006 fourth-quarter earnings of AIG's 3.44 billion U.S. dollars.
Credit asset-backed securities (ABS) of trading losses also affected Germany's largest insurer Allianz Group's investment banking business. Allianz Group's report, the Group last year, at least in the ABS transaction losses 1.3 billion euros, making the cost of investment banking business from the 2006 yield of 79.7 percent rose to 89 percent. In addition, the UK's largest insurer Aviva has announced that the company's 2007 profit fell about 37 percent.
The market for the crisis more pessimistic. Some analysts think that, including AIG, the insurer's loss is only a microcosm of the future may see more problems. Swiss Re insurance in the February report pointed out that the structural credit default swaps market price adjustment with the loss of value has reached 240 million Swiss francs. In addition, the report also predicted that the next group in the securities market will experience further losses.
The insurance giant lawsuit
Credit crisis of the financial deficit at the same time, even the hidden crisis exposed, makes the case entangled with the insurance giant. Swiss Re insurance issued earlier in the financial report also confirmed that a Swiss Re allegations of securities class action-has been the southern part of the New York federal court admissibility. The defendants in the pleadings, the company's executives was accused in some structural and credit default swaps with the loss of market value adjustments, issued false and misleading statements. Swiss Re insurance lawsuit accusing some of its internal staff and executives violated U.S. securities law, in particular its included in the two companies could bring huge risks to the credit default swaps transactions, were not disclosed.
Previously, the U.S. Justice Department announcement said that General Re four former AIG executives and a former head convicted on charges of improper conspiracy, securities fraud, mail fraud and forged documents to the U.S. Securities and Exchange Commission. U.S. Justice Department's announcement shows that from 2000 to 2001, General Re and AIG have reached a fraudulent insurance transactions, so that the latter inflated loss reserve 500 million U.S. dollars to mislead analysts and investors overestimate the AIG operating conditions And raise the company stock. Notice that this partnership is an act of fraud.
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