Swiss Re has stopped underwriting new credit derivatives trades after Sfr1.2bn (€755m) worth of credit-default swap writedowns revealed in November spurred a 9% decline in full year profits at the reinsurance giant, which has forecast further losses.

Jacques Aigrain, chief executive of Swiss Re, which reported its full-year results today, said the company ceased underwriting new credit derivatives transactions after its 2007 net income declined by 9% to Sfr4.2bn last year, compared with 2006.