by Calculated Risk on 11/19/2007 09:41:00 AM

From the WSJ: Swiss Re to take $1.1 bln loss after insuring swaps

Swiss Re on Monday said it was taking a $1.1 billion (1.2 billion Swiss franc) loss after insuring a client's portfolio exposed to the U.S. subprime mortgage meltdown and related credit-market turmoil.

Swiss Re's credit solutions division had put together protection to insure an unnamed company against a "remote risk of loss" -- a loss that materialized as Standard & Poor's and Moody's Investors Services slashed the ratings of a variety of debt instruments last month and as liquidity dried up in more exotic asset classes.
...
The loss is one of the first major subprime-related hits reported by a reinsurance company.

It can't be Monday without a visit to the confessional.