Swiss Re CEO Upbeat on Equity Markets

April 1, 2002

According to a report from Reuters News Agency Swiss Re’s CEO Walter Kielholz told a local Swiss Sunday paper, the NZZ am Sontag, that the company had begun to buy equity shares again in September and foresaw an annual average yield of between 8 and 9 percent.

The decision came following the Sept. 11 attacks, which the company recognized as a low point in the global economy. Since then there have been definite signs of a rebound and the company has renewed its interest on long-terms corporate bonds and equity holdings.

Although Swiss Re has announced a net loss for the year 2001, it remains confident that there will be a turn around. Last February the company issued a statement confirming that its property & casualty and financial services renewals at 1 January 2002 “saw significant improvements in rates as well as terms and conditions across all lines of business. Overall the average increase in rates achieved has been above 15%. This is largely driven by price increases on treaty renewals of 11% and renewals of facultative corporate business, which, during the last quarter, have produced rate increases of approximately 35%. Renewals during the remainder of 2002 are expected to be at comparable levels. The strong 2002 renewal confirms Swiss Re’s confidence in future business growth and profitability.”|”swiss, re, ceo, upbeat, on, equity, markets

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