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STOCKS NEWS EUROPE-Swiss Re gains as profit, capital shine

Tue Nov 3, 2009 3:40am EST

Stocks

   

Swiss Re (RUKN.VX) gains 5.4 percent, outperforming a 1.3 percent drop in the DJ STOXX European insurance index .SXIP after the reinsurer tops profit forecasts and strengthens its capital.

Some analysts caution results were boosted by one-offs and past business, however, and see only short-term gains for the stock.

"Disappointing growth coupled with a low combined ratio gives us the feeling that management is squeezing profitability out of business written in the past," says Kepler Capital Markets analyst Fabrizio Croce.

"While it is undisputed that Swiss Re's past book is of the highest quality, the question is when the company will again profitably grow the business." For more double click on [ID:nL293581]

Reuters Messaging rm://sam.cage.reuters.com@reuters.net


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