Credit Suisse Group's insurance arm, Winterthur Life has had £860m injected into it in order to rebuild a solvency margin. £600m will go towards strengthening the life and pensions side of the business and the rest will help support the general insurance side.Winterthur also received a cash injection in June this year of £760m for the same reasons.
With all of the money being pumped into this insurer, questions are obviously being raised regarding the viability of this side of Credit Suisse's business. However, a spokesman at Credit Suisse Group said, "we aim to maintain Winterthur's solvency at an adequate level". The spokesman then went on to say, "Winterthur's solvency capital has been affected by more realised losses and by hedging costs incurred in the course of reducing the insurance business's exposure to the equity markets".