Profits set to fall at Swiss Life
Swiss Life says it does not expect to be able to match 2000 results this year because of the poor economic environment. It added that it faces no claims from the September 11 terrorist attacks in the United States.
“An estimate of [full year] profit is at present difficult,” Switzerland’s largest life insurer said on Wednesday, citing a “massive deterioration” of equity markets since September 11.
Last year’s earnings more than doubled to SFr924 million ($582 million), boosted by extraordinarily large capital gains.
Noting that it faced no claims from the attacks in the US since it was neither an insurer nor an active reinsurer in that country, Swiss Life said it expected further growth in the second half of 2001.
The cost ratio would come down further, current earnings from its capital investments are set to match portfolio growth and there would also be a “very positive” earnings contribution from asset management.
Swiss Life said last week that poor financial markets had depressed net profit in the first half, pushing it down to SFr253 million ($159 million).
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