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MarketWatch
February 12, 2009 Thursday 7:42 AM EST
SECTION: NEWS & COMMENTARY; Markets
LENGTH: 336 words
HEADLINE: Swiss Re CEO quits following Buffett capital deal
BYLINE: Simon Kennedy, MarketWatch mailto:skennedy@marketwatch.com.
Simon Kennedy is the City correspondent for MarketWatch in London.
LONDON (MarketWatch) -- Troubled reinsurance group Swiss Re said Thursday that its CEO Jacques Aigrain has resigned following the group's recent capital injection from Warren Buffett's Berkshire Hathaway.
Aigrain has been replaced by deputy CEO and Chief Operating Officer Stefan Lippe with immediate effect, the firm said.
"Having taken measures to reinforce the group's capital strength and further de-risk its investment portfolio, the interests of Swiss Re (RUKN) are now best served by a change in executive leadership," Aigrain said in a statement.
Just a week ago, Swiss Re announced it would raise up to 5 billion Swiss francs of fresh capital, including 3 billion francs from Berkshire Hathaway (BRKA) (BRKB) , in order to protect its credit rating and balance further write-downs.
The reinsurer's write-downs, which led to a 1 billion franc loss in 2008, stem from its expansion beyond reinsurance into trading credit default swaps and other riskier operations.
The group has already said it will close down the divisions responsible for its losses, while Aigrain said Thursday that the new CEO Lippe "has been the architect of Swiss Re's focus on disciplined, quality underwriting in the reinsurance business."
Shares in the group rose 4.7% in afternoon trading. Up until Wednesday's close, the stock had dropped 37% since Swiss Re announced Buffett's capital injection and was down nearly 85% from a peak in early 2007.
Lippe has been at Swiss Re for 25 years and was appointed head of the property and casualty side of the business in 2001, adding the life and health underwriting division to his responsibilities in 2005.
"We are very pleased that Stefan Lippe assumes the CEO position. His proven track record in reinsurance will support our efforts to focus on our core business, while at the same time ensuring operational continuity," said Peter Forstmoser, the group's chairman.
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LOAD-DATE: February 13, 2009
Copyright © 2009 LexisNexis, a division of Reed Elsevier Inc. All Rights Reserved.
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MarketWatch
February 12, 2009 Thursday 7:42 AM EST
SECTION: NEWS & COMMENTARY; Markets
LENGTH: 336 words
HEADLINE: Swiss Re CEO quits following Buffett capital deal
BYLINE: Simon Kennedy, MarketWatch mailto:skennedy@marketwatch.com.
Simon Kennedy is the City correspondent for MarketWatch in London.
LONDON (MarketWatch) -- Troubled reinsurance group Swiss Re said Thursday that its CEO Jacques Aigrain has resigned following the group's recent capital injection from Warren Buffett's Berkshire Hathaway.
Aigrain has been replaced by deputy CEO and Chief Operating Officer Stefan Lippe with immediate effect, the firm said.
"Having taken measures to reinforce the group's capital strength and further de-risk its investment portfolio, the interests of Swiss Re (RUKN) are now best served by a change in executive leadership," Aigrain said in a statement.
Just a week ago, Swiss Re announced it would raise up to 5 billion Swiss francs of fresh capital, including 3 billion francs from Berkshire Hathaway (BRKA) (BRKB) , in order to protect its credit rating and balance further write-downs.
The reinsurer's write-downs, which led to a 1 billion franc loss in 2008, stem from its expansion beyond reinsurance into trading credit default swaps and other riskier operations.
The group has already said it will close down the divisions responsible for its losses, while Aigrain said Thursday that the new CEO Lippe "has been the architect of Swiss Re's focus on disciplined, quality underwriting in the reinsurance business."
Shares in the group rose 4.7% in afternoon trading. Up until Wednesday's close, the stock had dropped 37% since Swiss Re announced Buffett's capital injection and was down nearly 85% from a peak in early 2007.
Lippe has been at Swiss Re for 25 years and was appointed head of the property and casualty side of the business in 2001, adding the life and health underwriting division to his responsibilities in 2005.
"We are very pleased that Stefan Lippe assumes the CEO position. His proven track record in reinsurance will support our efforts to focus on our core business, while at the same time ensuring operational continuity," said Peter Forstmoser, the group's chairman.
©1997-2002 MarketWatch.com, Inc. All rights reserved. See details at http://custom.marketwatch.com/custom/docs/useragreement.asp.
LOAD-DATE: February 13, 2009
Copyright © 2009 LexisNexis, a division of Reed Elsevier Inc. All Rights Reserved.
Terms and Conditions Privacy Policy
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