Posted on 05 Feb 2009
Amid the recent announcement of Swiss Reinsurance Company's need to shore up capital due to asset write-downs, Standard & Poor's Corp. (S&P) has placed its AA financial strength ratings of the second-biggest reinsurer on credit-watch with negative implications.
The Zurich-based company said it is likely to report a net loss of 1 billion Swiss francs ($861 million) for the year. It is also looking to tap Berkshire Hathaway for an additional 3 billion Swiss francs ($2.58 billion) of additional capital.
“Both the magnitude of additional write-downs and the resulting need to raise capital are outside of our expectations,” said Peter Grant, a credit analyst at S&P, in a statement.