Swiss Re falls into red as volatile markets damage bond portfolio

ZURICH reinsurance giant Swiss Re posted a shock second-quarter net loss yesterday following heavy losses on its bond investments, and warned the difficult market conditions will continue to hurt.<br /><br />The firm said it made a net loss of Sfr381m (&pound;212m), compared with a profit of Sfr564m for the same period a year earlier.<br /><br />The loss at Swiss Re related to corporate bonds and totalled Sfr1.1bn.<br /><br />But the world&rsquo;s second-biggest reinsurer said it has boosted its chances of repaying a costly investment made by Warren Buffett&rsquo;s investment firm Berkshire Hathaway, after boosting its reserves to Sfr4.5bn.<br /><br />Earlier this year, Swiss Re said it would cut 10 per cent of its workforce, or 1,150 jobs, as it seeks to reduce costs.