NU Online News Service, Aug. 5, 3:47 p.m. EDT
Swiss Re reported mark-to-market losses on hedges and impairments created a second-quarter net loss of CHF 381 million ($359.4 million at current exchange rate), compared with 2008 second-quarter net income of CHF 564 million ($532 million).
The Zurich-based company said three factors drove down the results: mark-to-market losses on hedges on corporate bonds of CHF 1.1 billion ($1 billion); impairments of CHF 600 million ($566 million), primarily on securitized products; and the effects of its own credit spreads in certain financial liabilities, which resulted in a charge of CHF 431 million ($406.6 million).
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