Swiss Re, one of the world's biggest reinsurers, on Tuesday returned to strong profit in the third quarter, turning its back on losses that had depressed the group's outlook for the year.

Swiss Re posted 334 million Swiss francs (221 million euros, 326 million dollars) net income in the third quarter, the company said in a statement.

"The outlook for our company is encouraging. In the first nine months of 2009, we restored our capital position," said chief executive Stefan Lippe.

The Zurich-based group was severely hit by the financial crisis and has been struggling to regain profitability.

The result was at the upper end of analysts' expectations.

After a record annual loss of 864 million francs in 2008, Swiss Re had appeared on course for a turnaround this year with a 150 million franc profit during the first three months.

But a heavy 381 million Swiss franc loss in the second quarter, which was largely blamed on its financial ventures rather than its core reinsurance business, depressed the company's outlook for 2009.

Swiss Re had warned in August that future earnings could continue to be influenced by financial market trends, despite improving conditions in reinsurance markets.

The group suffered 1.2 billion francs in losses from the US subprime home loan crisis, forcing it to turn to Wall Street sage Warren Buffett to prop up its finances.

Chief executive Jacques Aigrain and chairman Peter Forstmoser later resigned after Aigrain was widely blamed for having led the reinsurer into the risky world of investment banking since he took over in 2006.

Swiss Re has announced about 1,000 job cuts worldwide to trim costs.