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Swiss Re Swings To 3Q Net Proft On Cost Cuts

By Goran Mijuk, Of DOW JONES NEWSWIRES

ZURICH -(Dow Jones)- Swiss Reinsurance Co (RUKN.VX) Tuesday said it swung to a third-quarter net profit, thanks to cost cutting and improved underlying reinsurance markets, and said it was confident for the remainder of the year.

The Zurich-based reinsurer said net profit for the three months to end- September stood at 334 million Swiss francs ($327.4 million) after a year- earlier net loss of CHF304 million.

The result, which was negatively impacted by impairments and hedging losses, beat analyst forecasts of CHF150 million.

"The outlook for our company is encouraging," said Chief Executive Stefan Lipppe.

"In the first nine months of 2009, we restored our capital position. Our underlying performance remains very strong and we have achieved significant progress in de-risking our Legacy portfolio," he added.

Swiss Re was hit by heavy asset write-downs during the financial crisis and was forced to take up fresh capital from Warren Buffett's Berkshire Hathaway Inc (BRKB). Its Double-A rating was also cut by rating agencies, raising fears the company would attract less business because of its lower credit-worthiness.

However, thanks to cost-cutting, improved financial and operational markets, Swiss Re was able to improve its balance sheet during the third quarter. Shareholders' equity rose CHF2.4 billion to CHF26.2 billion during the reporting period. The company also said that it now holds CHF6 billion in excess capital above the Double-A level.

Company Web Site:http://www.swissre.com

-By Goran Mijuk, Dow Jones Newswires, +41 43 443 80 47; goran.mijuk@ dowjones.com

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  11-03-090130ET
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