Swiss Life gave a gloomy insight into the problems facing some of Europe’s weaker insurance companies, as tumbling asset values and turbulent markets forced the Zurich-based group to issue its second profits warning since August, reports Reuters. The company said it now expected a loss on continuing operations this year. The revision followed a first warning in late August, when Swiss Life said earnings before the SFr1.5bn ($1.27bn) proceeds from selling Banco del Gottardo and operations in Belgium and the Netherlands would reach only SFr300-400m, compared with the former SFr1bn goal. The latest revision was accompanied by the suspension of share buy-backs and a clear hint that the dividend was under threat. Swiss Life’s SFr2.5bn buyback programme had already been curtailed in August, when it decided to limit repurchases to the SFr1bn target for 2008. That has now been further revised, with buy-backs to be halted at the SFr686m repurchased by end October.

This entry was posted by Gwen Robinson on Thursday, November 13th, 2008 at 5:24 and is filed under Capital markets. Tagged with Swiss Life. Edit this entry.