Swiss Re reported better than expected profits for 2007, prompting relief among investors that the SFr1.2bn ($1.15bn) hit on credit underwriting activities suffered last November had remained a one-off.

Describing the blow as “an isolated event” Jacques Aigrain, chief executive, said the group had combed its portfolio for further potential bombshells, without exposing any further surprises. However, Mr Aigrain revealed the credit default swap had suffered a further SFr240m of mark-to-market losses this year, casting a potential shadow over Swiss Re’s first-quarter figures.