Swiss reinsurer Converium issued a profit warning after announcing its second quarter results will be impacted by reserve strengthening for its US casualty business.
Standard & Poor's dropped its rating from A- to A. Its share price nose-dived 50% as a result of the profit warning.
The reinsurer said higher than expected losses primarily relating to the 1997 to 2001 underwriting years had required increased reserving. It announced this week that the reserve shortfall was estimated to be around $400m.
