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ZURICH : The world's largest reinsurer, Swiss Re, is out of danger from major exposure to the sub-prime mortgage crisis, the group's chief executive Jacques Aigrain said in remarks published Tuesday.
"We have no further material exposure to sub-prime in our insurance products," Aigrain said in an interview with German daily economic newspaper Handelsblatt.
The reinsurer group had been hit by the crisis which unfolded from sub-prime or high-risk loans in the United States. It has written down 2.7 billion Swiss francs (1.7 billion euros) in assets so far.
Aigrain said that he was more concerned about the high level of inflation, which could have a negative impact on the insurance sector. In some emerging markets, inflation is beginning to eat into the capital base of insurers.
But this could also be an opportunity for reinsurers, he said.
"Inflation is the price for uncertainty. Uncertainty is our business. We sell certainty," said Aigrain.
On Monday, Swiss Re said insurance companies could be hit with 20 percent more claims on natural disasters this year, with losses from Hurricane Gustav possibly reaching 8.0 billion dollars.
- AFP /ls
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