The world`s biggest reinsurer Swiss Re on Monday posted a net loss of 304 million Swiss francs (204 million euros, 258 million dollars) for the third quarter, hit by the turmoil in the financial markets.

Operating income in its property and casualty division declined to 99 million francs due to lower investment returns.

In its life and health division, it posted net investment losses of 572 million francs `due to the financial market turmoil and higher mortality in North America.`

The group`s return on investments was also hit by mark-to-market losses of 289 million francs for structured credit default swaps which are meant to provide insurance in case of a debt default.