The world of insurance continues to look jittery. AIG clearly wasn’t the only one that drank deeply at the CDS well, and is now seeing that come back to haunt them. The world’s second biggest re-insurer, Swiss Re, posted a shock loss due to bad CDS bets:
Bloomberg: Swiss Reinsurance Co., the world’s second-biggest reinsurer, posted its first loss in almost six years and suspended a share buyback program after wrong-way bets on credit-default swaps.
Swiss Re fell 5 per cent in Zurich trading after reporting a third-quarter loss of 304 million Swiss francs ($259 million) compared with net income of 1.47 billion francs a year ago. The median estimate of eight analysts was a 150 million-franc profit.
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