Press Release - DECEMBER 20, 2019

AM Best Affirms Credit Ratings of Swiss Reinsurance Company Ltd and Affiliates


CONTACTS:
 Valeria Ermakova
Senior Financial Analyst
+44 20 7397 0269
valeria.ermakova@ambest.com

Ghislain Le Cam, CFA, FRM
Director, Analytics
+44 20 7397 0268
ghislain.lecam@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

LONDON - DECEMBER 20, 2019
AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “aa” of Swiss Reinsurance Company Ltd (Switzerland) and affiliates. At the same time, AM Best has affirmed the associated Short-Term Issue Credit Rating (Short-Term IR) and Long-Term Issue Credit Ratings (Long-Term IRs). The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the companies and ratings).

The ratings reflect AM Best’s assessment of the rating fundamentals of the consolidated Swiss Re Ltd group (Swiss Re), namely its balance sheet strength, which AM Best categorises as strongest, as well as its strong operating performance, very favourable business profile and very strong enterprise risk management (ERM).

Swiss Re’s balance sheet strength is underpinned by consolidated risk-adjusted capitalisation that is comfortably in excess of minimum requirements for the strongest level assessment, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as its conservative asset allocation, low dependency on retrocession and best estimate reserving. AM Best considers Swiss Re’s financial flexibility as excellent, supported by effective capital management.

Swiss Re’s operating performance reflects well-diversified income arising from its operations in various lines of business and geographies, as well as its investment activities. The group has reported strong technical metrics over the underwriting cycle, as evidenced by its 10-year (2009-2018) average non-life combined ratio of approximately 95% (as calculated by AM Best). Operating earnings also are supported by the sound profitability of the group’s life and health operations, which have reported a return-on-equity ranging between 10% and 15% since 2015. However, underwriting results are subject to volatility due to relatively high exposure to low frequency and high severity events. Since 2017, Swiss Re’s non-life technical results have been affected by high incidence of natural catastrophe and man-made losses. The group continues to implement corrective actions to improve the performance of certain sub-segments of its portfolio, such as parts of its casualty business and Corporate Solutions business unit. AM Best will continue to monitor the impact of these actions on the technical performance of these sub-segments.

Swiss Re maintains a leading position in the global reinsurance market. In AM Best’s view, the group’s strong brand, highly diversified portfolio and very strong ERM partly insulate it from the impact of intense competition in the international reinsurance market.

The FSR of A+ (Superior) and the Long-Term ICR of “aa” have been affirmed with stable outlooks for Swiss Reinsurance Company Ltd and its following affiliates:


  • Swiss Re Asia Pte. Ltd

  • Swiss Re Europe S.A.

  • Swiss Re International SE

  • Swiss Re Corporate Solutions Ltd

  • Swiss Re Life & Health America Inc.

  • Swiss Reinsurance America Corporation

  • Westport Insurance Corporation

  • North American Specialty Insurance Company

  • North American Capacity Insurance Company

  • North American Elite Insurance Company

  • Washington International Insurance Company

  • First Specialty Insurance Corporation

  • Swiss Re Portfolio Partners S.A.

The Long-Term ICR of “a” has been affirmed with a stable outlook for Swiss Re America Holding Corporation.

The Short-Term Issuer Credit Rating of AMB-1+ has been affirmed for Swiss Reinsurance Company Ltd.

The following Short-Term IR has been affirmed:

Swiss Reinsurance Company Ltd—

— AMB-1+ on Euro medium-term notes (EMTN) programme

The following Long-Term IRs have been affirmed:

Swiss Reinsurance Company Ltd—

— “aa-” on EUR 500 million 6.625% subordinated notes, due 2042

Swiss Re Treasury (US) Corporation—

— “aa” on USD 250 million 2.875% senior unsecured notes, due 2022

— “aa” on USD 500 million 4.25% senior unsecured notes, due 2042

Swiss Re America Holding Corporation—

— “a” on USD 600 million 7.00% senior unsecured notes, due 2026 (of which USD 397 million remains outstanding)

— “a” on USD 350 million 7.75% senior unsecured notes, due 2030 (of which USD 193 million remains outstanding)

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data provider specialising in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.


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