Swiss Reinsurance Company Ltd. Chairman Peter Forstmoser will resign May 1–one year earlier than planned–and will be replaced by Vice Chairman and current Credit Suisse Chairman Walter B. Kielholz, the loss-battered company said.
Mr. Kielholz said he will relinquish his Credit Suisse chairmanship to concentrate fully on the "major challenges" facing the financially troubled company.
The change in chairman is the latest big personnel change in the wake of the global reinsurer's disclosure of a cascade of red ink on its balance sheet. On Feb. 12 the firm named Stefan Lippe to replace Jacques Aigrain as chief executive officer.
For 2008 the company had a net loss of CHF 864 million ($736.3 million at current exchange rate) driven mostly by investment losses.
The company said the reorganization of the board–which also includes the appointment of board member Mathis Cabiallavetta as vice chairman–will help strengthen focus on giving the CEO and executive committee "the best possible support" in the company's core business.
Swiss Re added the company will also focus on significantly reducing risks in its investment portfolio and ensuring "optimal capital management in order to satisfy increased demand from clients during this period of pronounced scarcity of financing in the global insurance sector."
Mr. Forstmoser was elected to the Swiss Re board of directors in 1990 and appointed chairman in 2000. Of his decision to step down on May 1, Mr. Forstmoser said, "Swiss Re has set a new course for its future development. Therefore I have taken the decision to step down from my position as the chairman of the board one year earlier than planned.
"I'm pleased that Walter B. Kielholz has agreed to take on the chairmanship. With Mathis Cabiallavetta as vice chairman, the chairmanship of the company will be further strengthened."
Mr. Kielholz said, "Swiss Re is a leader in the global market and has great potential. Even though the current results are disappointing, the core business is intact and its prospects are excellent. The company has highly qualified, committed employees.
"Moreover, I'm confident that at the Annual General Meeting, shareholders will support our proposals to strengthen the company's capital base."
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