Market Update

Movers: AMC Entertainment, Bed Bath & Beyond, EVgo, Zebra Technologies

Scott Peters
30 Mar, 2023
New York City

Bed Bath & Beyond Inc dropped 23.3% to 61 cents after the struggling home goods retailer filed to raise $300 million in stock offering but also raised the prospect of a bankruptcy filing. 

EVgo Inc soared 24.5% to $7.16 after the electric vehicle charging network company reported a surge in fourth quarter revenue and a rise in network throughput. 

Revenue in the fourth quarter increased 283% to $27.3 million from $7.1 million and net loss fell to $17.0 million from $46.3 million and diluted loss per share fell to 6 cents from 18 cents a year ago. 

For the full-year 2022, revenue soared 146% to $54.6 million from $22.2 million and net loss expanded to $27.6 million from $5.9 million and diluted loss per share rose to 40 cents from 9 cents a year ago. 

The company guided 2023 revenue in the range of $105 million to $150 million and adjusted operating earnings between $78 million and $60 million. 

Additionally, at year-end 2023, EVgo expects to have between 3,400 and 4,000 DC fast charging stalls in operation or  under construction. 

AMC Entertainment Holdings Inc edged down 0.4% to $4.98 after surging more than 13% in the last three days of trading on a speculation that Amazon.com Inc may acquire the network of movie theater  operators. 

 Zebra Technologies Corp increased 3.1% to $305.33 after the mobile computing and scanning solutions provider announced a leadership change. 

The company appointed Joe White as new Chief Product & Solutions Officer, replacing Bill Burns who became the company's CEO earlier this month. 

 

Initial Weekly Jobless Claims Advanced 7,000

Brian Turner
30 Mar, 2023
New York City

Weekly jobless claims increased by 7,000 to 198,000 for the week ending March 25, the U.S Department of Labor reported Thursday. 

The initial claims declined from the previous week's unrevised level of 191,000. 

The 4-week moving average increased 2,000 to 198,250 from the previous week's unrevised average of 196,250.

The advance number for seasonally adjusted insured  unemployment during the week ending March 18 was 1,689,000, a rise of 4,000 from the previous week's revised  level.

The highest insured unemployment rates in the week ending March 11 were in New Jersey 2.6%, Rhode Island 2.4%,  California and Massachusetts 2.3%, Minnesota 2.2%, Illinois 2.0%, Alaska 1.9%, Montana and New York 1.9%, and  Connecticut 1.8%.

Optimism Returned to Wall Street as Investors Look Beyond Regional Bank Crisis

Barry Adams
30 Mar, 2023
New York City

Stocks opened higher as optimism returned to Wall Street and investors surmised that the worst of the regional banking crisis may be over. 

Major averages jumped as much as 1% in the early trading but steadily lost ground and treasury yields edged lower. 

Tech stocks led the gainers and mega cap tech leaders including Meta Platforms, Apple Inc, Netflix Inc, Amazon.com Inc and Tesla Inc advanced between 1% and 2%. 

Investors also reviewed the latest downward revision of the fourth quarter real GDP growth but noticed the core PCE Price Index remained elevated. 

 

Weekly Jobless Claims Advanced 

Weekly jobless claims increased by 7,000 to 198,000 for the week ending March 25, the U.S Department of Labor reported Thursday. 

The initial claims declined from the previous week's unrevised level of 191,000. 

The 4-week moving average increased 2,000 to 198,250 from the previous week's unrevised average of 196,250.

 

Real GDP Estimate Revised Lower In Fourth Quarter  

Real gross domestic product growth for the final quarter of 2022 was revised lower, according to the third and final estimate released by the U.S. Bureau of Economic Analysis Thursday. 

The U.S. economy expanded at an annual pace of 2.6% in the December quarter, slower than the previous estimate of 2.7% and 3.2% in the third quarter. 

Consumer spending increase was revised lower to 1.0% from the previous estimate of 1.4% and international 

Real GDP increased 2.1% in 2022, compared with an increase of 5.9% in 2021. 

The increase in real GDP in 2022 primarily reflected increases in consumer spending, exports, private inventory investment, and nonresidential fixed investment that were partly offset by decreases in residential fixed investment and federal government spending. 

Despite the cooling of energy prices and slowing of goods inflation, elevated inflation remains well anchored in the economy. 

The price index for gross domestic purchases increased 6.8% in 2022, compared with an increase of 4.2% in 2021. 

The PCE price index, a preferred measure of inflation by policy makers, increased 6.3%, compared with an increase of 4.0%. 

Excluding volatile food and energy prices, the core PCE price index increased 5.0%, compared with an increase of 3.5%.

The Federal Reserve has vowed to bring down inflation to 2% but despite the nine-rate hikes, prices are still rising at a faster pace than the Fed's preferred level.  

 

Indexes & Yields 

The S&P 500 index increased 0.4% to 4,042.67 and the Nasdaq Composite index rose 0.6% to 12,001.49. 

The yield on 2-year Treasury notes increased 4 basis points to 4.12%, 10-year Treasury notes advanced 4  basis points to 3.57% and 30-yearTreasury bonds  edged down 1 basis point to 3.77%. 

Crude oil advanced $1.05 to $74.05 a barrel and natural gas fell 7 cents to $2.10 a thermal unit. 

 

US Movers 

Bed Bath & Beyond Inc dropped 23.3% to 61 cents after the struggling home goods retailer filed to raise $300 million in stock offering but also raised the prospect of a bankruptcy filing. 

Evgo Inc soared 24.5% to $7.16 after the electric vehicle charging network company reported a surge in fourth quarter revenue and a rise in network throughput. 

AMC Entertainment Holdings Inc edged down 0.4% to $4.98 after surging more than 13% in the last three days of trading on a speculation that Amazon.com Inc may acquire the network of movie theater  operators. 

 Zebra Technologies Corp increased 3.1% to $305.33 after the mobile computing and scanning solutions provider announced a leadership change. 

The company appointed Joe White as new Chief Product & Solutions Officer, replacing Bill Burns who became the company's CEO earlier this month. 

Fourth Quarter 2022 Real GDP Growth Revised Lower

Brian Turner
30 Mar, 2023
New York City

Real gross domestic product growth for the final quarter of 2022 was revised lower, according to the third and final estimate released by the U.S. Bureau of Economic Analysis Thursday. 

The U.S. economy expanded at an annual pace of 2.6% in the December quarter, slower than the previous estimate of 2.7% and 3.2% in the third quarter. 

Consumer spending increase was revised lower to 1.0% from the previous estimate of 1.4% and international 

Real GDP increased 2.1% in 2022, compared with an increase of 5.9% in 2021. 

The increase in real GDP in 2022 primarily reflected increases in consumer spending, exports, private inventory investment, and nonresidential fixed investment that were partly offset by decreases in residential fixed investment and federal government spending. 

Despite the cooling of energy prices and slowing of goods inflation, elevated inflation remains well anchored in the economy. 

The price index for gross domestic purchases increased 6.8% in 2022, compared with an increase of 4.2% in 2021. 

The PCE price index, a preferred measure of inflation by policy makers, increased 6.3%, compared with an increase of 4.0%. 

Excluding volatile food and energy prices, the core PCE price index increased 5.0%, compared with an increase of 3.5%.

The Federal Reserve has vowed to bring down inflation to 2% but despite the nine-rate hikes, prices are still rising at faster pace than the Fed's preferred level.  

Europe Movers: H&M, Moonpig Group, Vestas Wind Systems

Bridgette Randall
30 Mar, 2023
Frankfurt

Resource stocks led the gainers after crude oil, copper and iron ore prices advanced. 

Shell Plc, BP Plc, Glencore, Antofagasta, and Anglo American increased between 1% and 3%. 

H & M Hennes & Mauritz AB surged 16.3% to DKK 142.88 after the apparel retailer reported a surprise operating profit in the quarter ending in February. 

Revenue in the fiscal first quarter increased 12% to SEK 54.8 billion and operating profit rose to SEK 725 million from SEK 458 million a year ago. 

Sellpy, the second-hand platform and an associated  company is consolidated into the H&M group from the first quarter resulting in a one-time gain SEK 999 million. 

After-tax net income in the fiscal first quarter increased to SEK 540 million compared to SEK 217 million and earnings per share rose to SEK 0.33 from SEK 0.13 a year ago. 

Moonpig Group Plc soared 14.7% to 130.30 pence after the online greeting card and gifting platform in the UK and the Netherlands reiterated its annual revenue and adjusted earnings outlook. 

The company estimated annual revenue for the financial year ending April remain "unchanged" at around £320 million. 

The company added adjusted operating earnings guidance for the year also "remain unchanged." 

Vestas Wind Systems A/S added 5.0% to DKK 197.92 after the Danish wind turbine maker won a 1.31 GW onshore order in Brazil.

Casa dos Ventos Energias Renovaveis S/A placed an order for 756 MW wind turbine order for Rio Grande do Norte (Serra do Tigre) and 554 MW Bahia (Babilônia Centro) orders to be commissioned by 2025. 

European Markets Approach 3-week Highs, UK Auto Production Rebounded

Bridgette Randall
30 Mar, 2023
Frankfurt

European markets advanced for the third day in a row after investors looked beyond the recent banking crisis in the U.S. and Switzerland. 

Market indexes advanced on the hopes that the decline in energy prices will continue to weaken goods price inflation and policymakers may slow interest rate hikes. 

Spain's inflation fell sharply in March after electricity and fuel prices declined and the UK's automobile production rebounded after parts shortages eased. 

Italy's jobless rate held at 7.0% in February, matching the rate in January, the statistical office ISTAT said Thursday. 

 

Spain's Inflation Weakened In March 

Consumer price inflation  in Spain slowed at a slower pace in March after energy and fuel price fell, the statistical office INE reported Thursday. 

Consumer price inflation on an annual basis in March rose at 3.3%, slower than 6.0% in February and the prices rose at the slowest pace since August 2021. 

Core inflation, which excludes non-processed food and energy. eased slightly to 7.5% from 7.6% in February. 

On a monthly basis, overall consumer prices rose 0.4%, slower than 0.9% increase in February. 

The Bank of Spain has estimated EU harmonized inflation rate in Spain to drop to 3.7% in 2023 and weaken to 3.6% in 2024.   

 

UK Automobile Production Rebounded In February 

The UK automobile production in February rose 13.1% to 69.707 units after electronic chips and components shortages eased, the Society of Motor Manufacturers and Traders reported Thursday. 

Passenger car production for the home market increased 20.3% to 13,073 units and exports rose 11.5% to 56,634 units. 

Exports to international markets accounted for 81.2% of total production. 

  

Europe Indexes & Yields 

The DAX index increased 1.1% to 15,499.89, the CAC-40 index advanced 1.2% to 7,273.02 and the FTSE 100 index added 0.8% to 7,624.49. 

The yield on 10-year German Bunds rose to 2.32%, French bonds traded at 2.82%, the UK gilts at 3.46% and Italian bonds hovered near 4.14%. 

The euro advanced to $1.086, the British pound to $1.234 and the Swiss franc to 91.51 cents.  

Brent crude oil added 55 cents to $78.84 a barrel and the Dutch natural gas added 77 cents to Є43.57 a MWh. 

 

Europe Movers 

Resource stocks led the gainers after crude oil, copper and iron ore prices advanced. 

Shell Plc, BP Plc, Glencore, Antofagasta, and Anglo American increased between 1% and 3%. 

Vestas Wind Systems A/S added 5.0% to DKK 197.92 after the Danish wind turbine maker won a 1.31 GW onshore order in Brazil. 

Casa dos Ventos Energias Renovaveis S/A placed an order for 756 MW wind turbine order for Rio Grande do Norte (Serra do Tigre) and 554 MW Bahia (Babilônia Centro) orders to be commissioned by 2025. 

H & M Hennes & Mauritz AB surged 16.3% to DKK 142.88 after the apparel retailer reported a surprise operating profit in the quarter ending in February. 

Revenue in the fiscal first quarter increased 12% to SEK 54.8 billion and operating profit rose to SEK 725 million from SEK 458 million a year ago. 

Sellpy, the second-hand platform and an associated  company is consolidated into the H&M group from the first quarter resulting in a one-time gain SEK 999 million. 

After-tax net income in the fiscal first quarter increased to SEK 540 million compared to SEK 217 million and earnings per share rose to SEK 0.33 from SEK 0.13 a year ago. 

Moonpig Group Plc soared 14.7% to 130.30 pence after the online greeting card and gifting platform in the UK and the Netherlands reiterated its annual revenue and adjusted earnings outlook. 

The company estimated annual revenue for the financial year ending April remain "unchanged" at around £320 million. 

The company added adjusted operating earnings guidance for the year also "remain unchanged." 

Nasdaq Advanced 2% On Stable Treasury Yields and Receding Bank Worries

Barry Adams
29 Mar, 2023
New York City

Tech stocks rallied for the second day in a row after the yields on treasury securities held.  

Stocks opened higher after banking crisis worries receded and Treasury yields for short and long term securities traded in a tight range and closed nearly unchanged. 

With easing of bank worries and the Fed's rate pivot scenario dominated trading sentiment. Tech stocks, regional banks and rate sensitive sectors led the gainers on Wednesday's session. 

Michael Barr, vice chairman for supervision Federal Reserve, said financial meltdown at the failed Silicon Valley Bank resulted from poor risk management. 

"The picture that has emerged thus far shows SVB had inadequate risk management and internal controls that struggled to keep pace with the growth of the bank," noted Barr in his prepared remarks to the Committee on Financial Services, U.S. House of Representatives on Wednesday. 

Barr's comments soothed market nerves for now and investors surmised that the U.S. banking system may be able to avoid a wider contagion. 

Tech stocks rallied on Wall Street following the surge in Alibaba Group in Hong Kong. 

SoftBank, the largest stockholder in the Chinese e-commerce giant with a stake of 24%, soared on the Alibaba news. 

In New York, Alphabet Inc, Amazon.com Inc, Meta Platforms and Apple Inc advanced between 1% and 2.5% after worries of rapid rate hikes eased. 

 

Weekly Mortgage Applications Index Rebounded  

Mortgage applications volume increased 2.9% in the week ended March 24, the fourth weekly increase in a row, according to the weekly survey released by the Mortgage Bankers Association on Wednesday. 

“Application activity increased as mortgage rates declined for the third straight week. 

The 30-year fixed rate declined to 6.45%, the lowest level in over a month,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist.

The Refinance Index increased 5% from the previous week and was 61% lower than the same week one year ago. 

The seasonally adjusted Purchase Index increased 2% from one week earlier and the unadjusted index increased 2% compared with the previous week and was 35% lower than the same week a year ago.

 

U.S. Indexes & Yields 

The S&P 500 index increased 1.4% to 4,025.27 and the Nasdaq Composite index increased 1.7% to 11,920.07. 

The yield on 2-year Treasury notes increased 3 basis points to 4.09%, 10-year Treasury notes closed unchanged at 3.57% and 30-year Treasury bonds decreased 1 basis point to 3.78%. 

Crude oil increased 33 cents to $72.86 a barrel and natural gas price edged up 2 cents to $2.17 a thermal unit. 

 

U.S. Movers 

UBS Group AG increased 3.5% to $19.95 after the company recalled former chief executive Sergio Ermotti to manage the recent acquisition of Credit Suisse. 

Ermotti served as chief executive for nine years to October 2020 and is currently Chairman of Swiss Re.

Ermotti will replace current CEO Ralph Hamers on April 6 and Hamers will advise the company during the transition. 

Lululemon Athletica increased 14.4% to $365.05 after the athleisure retailer reported a surge in comparable same store sales in the fourth quarter. 

Revenue in the fourth quarter ending in January increased 30% to $2.8 billion on comparable sales surge of 27%. 

Net income in the quarter dropped to $119.8 million from $434.5 million and diluted earnings per share fell to 94 cents from $3.37 a year ago. 

The company estimated fiscal first quarter 2023 net revenue in the range of $1.890 billion to $1.930 billion, representing growth of  approximately 18%. 

Diluted earnings per share are expected to be in the range of $1.93 to $2.00 for the quarter. 

Micron Technology Inc advanced 6.2% to $63.0 after the semiconductor manufacturer reported smaller-than-anticipated quarterly loss. 

Revenue in the fiscal second quarter ending on March 2 declined to $3.69 billion from $4.09 billion in the prior quarter and $7.79 billion a year ago. 

The company swung to a loss of $2.3 billion from a profit of $2.3 billion and diluted earnings per share was ($2.12) from $2.0 a year ago. 

The company guided revenue in the third quarter of $3.7 billion and diluted loss per share of $1.79. 

“Customer inventories are getting better, and we expect gradual improvements to the industry’s supply-demand balance," said chief executive Sanjay Mehrotra. 

 

European Markets Extended Recent Gains 

European markets rebounded for the second day in a row as investors looked beyond the current banking crisis in Switzerland and the United States. 

UBS rehired its former chief executive, after the Swiss-bank was forced by the Swiss government to takeover Credit Suisse, shoring confidence in bank stocks in the region. 

Market nerves were further soothed after the Federal Reserve Vice Chairman Supervision Michael Barr said the poor risk control and mismanagement and not systemic troubles were behind the recent demise of Silicon Valley Bank.  

Tech stocks were among the leading gainers after Alibaba Group announced a restructuring plan and split the company in six business units. 

The restructuring news lifted tech stocks in Europe, Asia and in New York trading. 

 

Europe Indexes & Yields 

The DAX index increased 1.2% to 15,328.78, the CAC-40 index added 1.4% to 7,186.99 and the FTSE 100 index advanced 1.1% to 7,564.27. 

The yield on 10-year German Bunds increased to 2.82%, French bonds advanced to 2.82%, the UK gilts to 3.46% and Italian bonds to 4.14%. 

The euro inched up to $1.08, the British pound edged higher to $1.23 and the Swiss franc advanced to 91.94 cents. 

Brent crude decreased 14 cents to $78.50 a barrel and the Dutch TTF natural gas prices for immediate month delivery rose 31 cents to $43.06 per MWh. 

 

Europe Movers 

Mercedes Benz Group AG decreased 2.1% to €70.36 after Kuwait Investment Authority plans to reduce its stake in the luxury automaker. 

Kuwait's sovereign wealth fund plans to sell 20 million shares at average price of Є69.27 and raise about Є1.4 billion. 

After the sale, the sovereign fund will still hold about 53 million shares or 4.8% stake in the company. 

Infineon Technologies AG increased 6.9% to €35.88 after the German chipmaker raised its outlook for the fiscal second quarter and full-year 2023. 

Nordex SE advanced 1.3% to €12.78 after the German wind turbine maker won contracts to supply and install 14 wind turbines with a total capacity of 78 MW in Greece. 

Two wind farms with a total of 10 turbines are to be built in Boeotia in Central Greece, while one wind farm with four turbines is to be installed in Achaia in the north-west of the Peloponnese in western Greece.   

After commissioning the three wind farms will produce more than 232 GWh of electricity a year, equivalent to the consumption of 60,000 Greek households, and reducing the emission of around 100,000 tons of CO2 a year. 

Essentra Plc increased 5.4% to 187.0 pence after the components and systems maker launched a stock repurchase program. 

The company said revenue in 2022 increased 12% to £338 million from £302 million and net loss expanded to £31 million from £5 million and loss per share rose to 10.3 pence from 1.6 pence from a year ago. 

The company announced a plan to return £150 million capital to shareholders, consisting of £90 million in special dividend (29.8 pence per share) and £60 million through a stock repurchase plan. 

UBS Group AG increased 3.7% to Sfr 18.40 after the Swiss-bank rehired Sergio Ermotti as chief executive to lead the recent takeover of Credit Suisse. 

Ermotti served as chief executive for nine years to October 2020 and is currently Chairman of reinsurance company Swiss Re. 

Ermotti will replace current CEO Ralph Hamers on April 6 and Hamers will advise the company during the transition, said the company in a press statement. 

Europe Movers: Essentra, Infineon Technologies, Mercedes Benz, Nordex, UBS

Bridgette Randall
29 Mar, 2023
Frankfurt

Essentra Plc increased 5.4% to 187.0 pence after the components and systems maker launched a stock repurchase program. 

The company said revenue in 2022 increased 12% to £338 million from £302 million and net loss expanded to £31 million from £5 million and loss per share rose to 10.3 pence from 1.6 pence from a year ago. 

The company announced a plan to return £150 million capital to shareholders, consisting of £90 million in special dividend (29.8 pence per share) and £60 million through a stock repurchase plan. 

Mercedes Benz Group AG decreased 2.1% to €70.36 after Kuwait Investment Authority plans to reduce its stake in the luxury automaker. 

Kuwait's sovereign wealth fund plans to sell 20 million shares at average price of Є69.27 and raise about Є1.4 billion. 

After the sale, the sovereign fund will still hold about 53 million shares or 4.8% stake in the company. 

Infineon Technologies AG increased 6.9% to €35.88 after the German chipmaker raised its outlook for the fiscal second quarter and full-year 2023. 

Nordex SE advanced 1.3% to €12.78 after the German wind turbine maker won contracts to supply and install 14 wind turbines with a total capacity of 78 MW in Greece. 

Two wind farms with a total of 10 turbines are to be built in Boeotia in Central Greece, while one wind farm with four turbines is to be installed in Achaia in the north-west of the Peloponnese in western Greece.   

After commissioning the three wind farms will produce more than 232 GWh of electricity a year, equivalent to the consumption of 60,000 Greek households, and reducing the emission of around 100,000 tons of CO2 a year. 

UBS Group AG increased 3.7% to Sfr 18.40 after the Swiss-bank rehired Sergio Ermotti as chief executive to lead the recent takeover of Credit Suisse. 

Ermotti served as chief executive for nine years to October 2020 and is currently Chairman of reinsurance company Swiss Re. 

Ermotti will replace current CEO Ralph Hamers on April 6 and Hamers will advise the company during the transition, said the company in a press statement. 

European Markets Extended Recent Gains

Bridgette Randall
29 Mar, 2023
Frankfurt

European markets rebounded for the second day in a row as investors looked beyond the current banking crisis in Switzerland and the United States. 

UBS rehired its former chief executive, after the Swiss-bank was forced by the Swiss government to takeover Credit Suisse, shoring confidence in bank stocks in the region. 

Market nerves were further soothed after the Federal Reserve Vice Chairman Supervision Michael Barr said the poor risk control and mismanagement and not systemic troubles were behind the recent demise of Silicon Valley Bank.  

Tech stocks were among the leading gainers after Alibaba Group announced a restructuring plan and split the company in six business units. 

The restructuring news lifted tech stocks in Europe, Asia and in New York trading. 

 

Indexes & Yields 

The DAX index increased 1.2% to 15,328.78, the CAC-40 index added 1.4% to 7,186.99 and the FTSE 100 index advanced 1.1% to 7,564.27. 

The yield on 10-year German Bunds increased to 2.82%, French bonds advanced to 2.82%, the UK gilts to 3.46% and Italian bonds to 4.14%. 

The euro inched up to $1.08, the British pound edged higher to $1.23 and the Swiss franc advanced to 91.94 cents. 

Brent crude decreased 14 cents to $78.50 a barrel and the Dutch TTF natural gas prices for immediate month delivery rose 31 cents to $43.06 per MWh. 

 

Europe Movers 

Mercedes Benz Group AG decreased 2.1% to €70.36 after Kuwait Investment Authority plans to reduce its stake in the luxury automaker. 

Kuwait's sovereign wealth fund plans to sell 20 million shares at average price of Є69.27 and raise about Є1.4 billion. 

After the sale, the sovereign fund will still hold about 53 million shares or 4.8% stake in the company. 

Infineon Technologies AG increased 6.9% to €35.88 after the German chipmaker raised its outlook for the fiscal second quarter and full-year 2023. 

Nordex SE advanced 1.3% to €12.78 after the German wind turbine maker won contracts to supply and install 14 wind turbines with a total capacity of 78 MW in Greece. 

Two wind farms with a total of 10 turbines are to be built in Boeotia in Central Greece, while one wind farm with four turbines is to be installed in Achaia in the north-west of the Peloponnese in western Greece.   

After commissioning the three wind farms will produce more than 232 GWh of electricity a year, equivalent to the consumption of 60,000 Greek households, and reducing the emission of around 100,000 tons of CO2 a year. 

Essentra Plc increased 5.4% to 187.0 pence after the components and systems maker launched a stock repurchase program. 

The company said revenue in 2022 increased 12% to £338 million from £302 million and net loss expanded to £31 million from £5 million and loss per share rose to 10.3 pence from 1.6 pence from a year ago. 

The company announced a plan to return £150 million capital to shareholders, consisting of £90 million in special dividend (29.8 pence per share) and £60 million through a stock repurchase plan. 

UBS Group AG increased 3.7% to Sfr 18.40 after the Swiss-bank rehired Sergio Ermotti as chief executive to lead the recent takeover of Credit Suisse. 

Ermotti served as chief executive for nine years to October 2020 and is currently Chairman of reinsurance company Swiss Re. 

Ermotti will replace current CEO Ralph Hamers on April 6 and Hamers will advise the company during the transition, said the company in a press statement.