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18th of May 2012

Swiss Re upgraded to AA-

Matthew Broomfield 28/10/2011

Global reinsurer Swiss Re and its core subsidiaries have had their ratings raised by Standards and Poor’s to AA- from A+.  The outlook on its long-term counterparty credit and insurer financial strength ratings is stable.
 
S&P believes that since its last review Swiss Re has successfully de-risked its asset portfolio, repaid the convertible perpetual capital instrument (CPCI) with Berkshire Hathaway, maintained its significantly redundant 'AAA' capital position, and stabilised its net income.
 
The ratings on Swiss Re reflect the group's very strong competitive position, very strong capitalisation, and very strong non-life operating performance, said S&P.
 
They are constrained by S&P’s view that Swiss Re has yet to fully restore its financial flexibility and that the group's life operating performance has exhibited some volatility, and has not contributed to group profitability on the same scale as the non-life segment.
 
“We believe the group continues to maintain its very strong competitive position in the market. Swiss Re continues to be a market leader in the life reinsurance and insurance-linked securities (ILS) markets, and has maintained prudent cycle management in the non-life lines, achieving more favourable pricing at recent renewals than the market,” said the rating agency.

Tags: Standard & Poor's, Swiss Re

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