UPDATE 1-Swiss Re chairman sees no further writedowns-paper

(adds details, shares, trader comments, background)

ZURICH, July 22 (Reuters) - The world's largest reinsurer, Swiss Re RUKN.VX, was unlikely to have further writedowns, the chairman of the company's board of directors, Peter Forstmoser, was quoted as saying on Tuesday, boosting Swiss Re's shares.

"As for now, I do not see any evidence that would make further value adjustments necessary," Forstmoser told Swiss weekly Handelszeitung, according to a summary of an interview released a day ahead of the paper's publication.

Swiss Re has been one of the biggest insurance victims of the credit crunch, because of its strategy of operating in both the investment banking and insurance markets. It has already written down more than 2 billion Swiss francs ($2 billion) on credit default swaps.

Swiss Re shares reversed early losses on the chairman's comments, trading up 0.7 percent at 65.20 Swiss francs by 1455 GMT, outpacing a 1.4 percent fall in the European sector .SXIP

"Mr. Forstmoser's words have the effect of a sedative in such an environment," one Zurich-based trader said.

Last week, news that Swiss Re still had $9.6 billion exposure to the debt of troubled U.S. mortgage financers Freddie Mac FRE.N and Fannie Mae FNM.N renewed fears over its vulnerability to the credit crunch and sent its shares down.

Forstmoser said the company was sticking to its long-term goal of growing earnings per share by 10 percent over the cycle, the paper said.

Forstmoser said Swiss Re will continue to buy back shares, the paper reported. "Alternatively we will use our capital for acquisitions and our core business," Forstmoser was quoted as saying. (Reporting by Sven Egenter; Editing by David Cowell)