(Bloomberg) ? Converium Holding Ltd., the Swiss reinsurer that plans to ask investors for as much as $400 million after reporting a record loss, said Fidelity International Ltd. cut its holding in the company to 3.51 percent from 9.87 percent.

Bermuda-based Fidelity now owns 1.4 million Converium shares compared with 3.94 million shares earlier, the reinsurer based in Zug, Switzerland, said in an e-mailed statement. Fidelity International is part of Boston-based Fidelity Investments, the largest US mutual fund company.

Converium last week reported a $660 million second-quarter loss after adding $385 million to reserves, triggering a $270 million tax charge and a $94 million writedown of goodwill. Chief executive officer Dirk Lohmann said last week that posting a profit this year ?is almost an impossible task.?

In the second quarter the company discovered a shortfall in reserves for claims from US casualty policies written between 1997 and 2001. The policies covered risks such as medical malpractice, liability for corporate officers and construction defects.