Credit Suisse has announced that its insurance subsidiary Winterthur has suffered "significant" losses.
The Swiss financial services group said it expects Winterthur to drain its profits, after injecting £828.3m into the insurer.
Winterthur has already reduced equities in its investment portfolio during the third quarter to guard against further market volatility.
However Winterthur's capital base has been weakened further through the costs of adding new business.
Earlier this year Credit Suisse ousted its chairman and chieft executive Lukas Muhlemann.
Current Swiss Re chief executive Walter Kielholz will replace Muhlemann.
