[ad_1]
Enter Wall Street with Street Insider PremiumRequest your 1 week free trial here.
LONDON–(BUSINESS WIRE)–
AM Best Zurich Insurance Group Limited (Zurich) has a financial strength rating (FSR) of A+ (excellent) and a long-term issuer credit rating (long-term ICR) of ‘aa-‘ (excellent) for its major rated insurance subsidiary confirmed. (Switzerland). At the same time, AM Best confirmed an ‘a’ (excellent) long-term ICR for Zurich (a non-operating holding company). The FSR outlook is stable, but the long-term ICR outlook is positive.
The credit rating reflects the strength of Zurich’s consolidated balance sheet, which AM Best rates as very strong, as well as its strong operating performance, very good business profile and good enterprise risk management (ERM). It reflects.
The positive long-term ICR outlook reflects AM Best’s expectations that strong and stable operating income from various profit centers in Zurich will continue to underpin the resilience of its balance sheet strength. The Group’s asset-liability and liquidity management capabilities are expected to help it withstand current external headwinds related to financial market volatility and uncertain macroeconomic outlook.
The strength of Zurich’s balance sheet is underpinned by risk-adjusted capital as measured by the Best’s Capital Adequacy Ratio (BCAR), which was at its highest level at the end of 2021. Showed access to financial markets. AM Best expects Zurich’s balance sheet to be significantly less sensitive to market risks after disposing of part of its German and Italian life insurance backbooks due to be completed between 2022 and 2023 . Given the current inflationary pressures, we are taking action where necessary. A partially offsetting factor is Zurich’s moderate reliance on a soft capital component to underpin its capital position. This includes the value of life insurance business held. AM Best expects this to decline after the sale of the German and Italian lifeback books is completed.
The Group’s strong performance is underpinned by a highly diversified earnings profile across business units and geographies. Over the past few years, Zurich has successfully improved the performance of its non-life insurance portfolio. The Group’s earnings are underpinned by solid earnings from its life insurance business and stable investment income. In addition, consistent fee-based income from Zurich’s unclaimed administration services for Farmers Exchange, a leading mutual insurance group operating in the United States, drives operational performance. As a result, Zurich achieved his five-year (2017-2021) average return on equity of 11.8% (calculated by AM Best). The group reported net profit attributable to his shareholders of US$2.2 billion in the first half of 2022 (H1 2021: US$2.2 billion). This is underpinned by strong performances in all Profit Centers.
Zurich is one of the world’s largest insurance groups, with excellent diversification across geographies and products. The group remains strongly competitive in Europe and the US, has a strong presence in Latin America and a select position in the Asia-Pacific region.
FSR A+ (Superior) and Long-Term ICR ‘aa-‘ (Superior) were confirmed for the following subsidiaries in Zurich, confirming a stable FSR outlook and a positive Long-Term ICR outlook:
-
Zurich Insurance Company
-
Maryland Fidelity and Deposit Company
-
Empire Fire and Marine Insurance Company
-
Empire Compensation Insurance Company
-
Universal Underwriters Insurance Company
-
American Guaranty Insurance Company
-
American Zurich Insurance Company
-
Texas insurance company Universal Underwriters
-
real estate insurance company
-
Zurich American Insurance Company
-
Zurich American Insurance Company of Illinois
-
Colonial American Casualty & Surety Company
-
rural insurance company
-
Zurich Insurance Company
-
Zurich American Life Insurance Company
This press release relates to credit ratings posted on AM Best’s website. For all rating information related to the release and related disclosures, including details of the office responsible for issuing the individual ratings referenced in this release, please see AM Best’s Recent Ratings Activity web page. please give me. For additional information on the use and limitations of credit rating opinions, please see our best credit rating guide. For information on proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments, and AM Best Press Releases, please see our Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider dedicated to the insurance industry. Headquartered in the United States, with offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City, we operate in over 100 countries. For more information, please visit www.ambest.com.
Copyright © 2022 AM Best Rating Services, Inc. and/or its affiliates. all rights reserved.
View source version at businesswire.com: https://www.businesswire.com/news/home/20221021005316/en/
Valeria Ermakova
Associate Director, Analytics
+44 20 7397 6269
[email protected]
Christopher Sharkey
manager, public relations
+1 908 439 2200, ext. 5159
[email protected]
Ghislain Le Cam, CFA, FRM
Director, Analytics
+44 20 7397 6268
[email protected]
Al Surabin
communication specialist
+1 908 439 2200, ext. 5098
[email protected]
Source: AM Best
[ad_2]
Source link
