Swiss Re has reaffirmed its earnings targets as its financial writedowns are lower than expected.

The giant reinsurer has also taken steps to reduce its exposure to corporate bonds, equities and structured assets.

Head of Financial Markets David Blumer says Swiss Re’s investment portfolio remains sound despite tough financial markets.

“The difficult market challenges also create new opportunities,” he said. “The level of natural catastrophes and the volatility in financial markets is likely to accelerate the ending of the soft market for property and casualty.”

Swiss Re says it is maintaining its targets of earnings per share growth of 10% and return on equity of 14% over the cycle.