ZURICH - JACQUES Aigrain has stepped down as chief executive officer of Swiss Re, the world's largest reinsurer, and will be replaced by Stefan Lippe, the group announced on Thursday in a statement.

Mr Lippe, 53, who has been with the group for 25 years, moves up from his position as deputy CEO position and chief operating officer, said the company.

Mr Lippe's experience would help the group's efforts to reinforce its core business said Swiss Re's president Peter Forstmoser in a statement.

The group's shares dropped sharply last week after it announced it expected net losses for 2008 of one billion Swiss francs (S$1.35 billion).

The group also announced it had obtained five billion Swiss francs in fresh capital, including three billion from US investor Warren Buffett's Berkshire Hathaway group.

Last Friday, the day after Swiss Re announced the expected losses, Moody's Investors Service downgraded its long-term debt rating from 'Aa2' to 'Aa3'.

Moody's did not rule out a future further downgrade because of fears about toxic assets.

'The review for possible further downgrade reflects concerns over whether the Group's future credit profile is likely to remain consistent with the expectations for an Aa-rated entity,' it added. -- AFP