Swiss Franc cap removed; Swiss Re & Zurich shares sink

The removal of the cap on the Swiss Franc that has held back inflows has resulted in Swiss Re and Zurich shares taking a battering.

As at time of writing, reinsurer Swiss Re has seen shares fall by 10 percent while insurer Zurich has seen shares fall by 13 percent. The overall stock market is down 13.5 percent.

Following the cap’s removal by the Swiss National Bank, the Swiss franc has surged to its strongest level on record against the Euro.

At the same time the bank has reduced a key interest rate from -0.25 percent to -0.75 percent, increasing the amount investors have to pay to hold Swiss deposits.

Update: At 1pm, Swiss Re's shares have fallen 6 percent, while Zurich's shares have fallen by 9 percent.