World's second largest reinsurer, Swiss Re, reported an annual profit of 506-million-Swiss-franc in 2009, against the net loss suffered a year earlier during the financial crisis.

According to an official of the company, despite the increase the earnings, its profit missed expectations due to heavy losses on securitized products and corporate bond hedges. The company's capital position bounced back to a comfortable level from the levels during crisis to an excess of over 9 billion Swiss francs and increase in the capital level has given confidence to achieve some important goals.

Company's core reinsurance business recorded a notable growth in the operating income from property and casualty reinsurance. It also shifted from corporate credit hedging to government securities and high grade corporate bonds and "terminated substantially all of its exposures" to Credit Default Swaps (CDS).

Strong fundamental of company's business have given confidence to the company for the future growth.