Swiss Life losses hit by accounting error
Troubled life insurer Swiss Life has revealed that a hole in its accounts caused a first half loss 50% higher than it had originally reported last month.
The group had originally stated that net losses for the first half of 2002 would be SFr386m (£165m), but in a review of the accounts by PricewaterhouseCoopers, a mistake was spotted which meant that this figure has now been revised to a net loss of SFr578m (£247m).
The results could mean a further setback in the insurer’s attempt to raise SFr1.2bn of capital to help bolster the coffers.
Chief executive Roland Chlapowski said the reporting error was ‘very regrettable’ and that steps were being taken to improve the company’s accounting team ‘qualitatively and quantitatively’.