In core operations, Swiss Re's property-casualty business group reported improvements in rates and terms and conditions across all lines of business, with 67 percent of p-c's traditional treaty business being renewed in January with an average rate increases of 10 percent.

For Swiss Re's financial services business group, corporate risk underwriting completed 43 percent of their renewals between last October and the end of last month, with an average rate increase on the renewed business of 16 percent, the company stated.

The firm's credit and surety book renewed with a five-percent boost in premiums while exposures were reduced by 13 percent, creating a strong jump in premiums relative to exposure.

On its equity investments, the company didn't fare as well. Swiss Re noted in a statement that, "2002 was the third consecutive year of falling stock markets, with the second half of the year seeing a particularly sharp downturn."

The total return on investment for 2002 is expected to be in the range of 5 billion Swiss francs ($3.69 billion), or 4.7 percent, which is lower than Swiss Re's initial target of 6.7 percent for the year.

In 2001, the reinsurer had posted a return on investment result of 8.4 billion Swiss francs ($6.20 billion), or 8 percent.

The impairment charges for 2002 equity losses were 3.4 billion Swiss francs ($2.51 billion) compared with impairments in 2001 of 663 million Swiss francs ($489.90 million).

Realized gains in 2002 were 3.1 billion Swiss francs ($2.29 billion) against 3.4 billion Swiss francs ($2.51 billion) in 2001, resulting from gains on equities and bonds, plus gains on equity hedges, the company said.

Commenting on the dividend cut--the company hasn't yet specified how big the cut would be--and to ease fears of a cash call, John Fitzpatrick, Swiss Re chief financial officer, said during today's conference call, "We've always said we have the ability and willingness to live within our means. The dividend cut is designed to stay within our means."

Swiss Re also stated during the conference call that its exposure to Dutch retail giant Royal Ahold NV, which has lost billions off its market capitalization after admitting to overstating earnings by at least $500 million, is very limited.

The reinsurer said it has some Ahold exposure through trade and surety insurance products underwritten for the company and holds some Ahold bonds in its investment portfolio. The size of that holding is immaterial, the company said.