S&P upgrades Zurich Insurance rating to AA
Standard & Poor’s (S&P) has upgraded the long-term issuer credit and financial strength rating of Zurich Insurance Co. and its associated entities to AA from AA-.
The rating change reflects Zurich Insurance’s “sustainably improved” financial performance, which includes its balance sheet and capital allocation discipline. The ratings agency noted said that the rating is “likely to remain robust”.
The outlook was revised to stable from positive as Zurich Insurance is expected to keep generating strong earnings while maintaining strong capital adequacy and a healthy balance sheet.
S&P Global added that Zurich Insurance had a globally diversified business profile and its risk-tolerance policies would allow it to gain comfortable capital buffers within a strong capital adequacy range.
Entities included in the rate change are Zurich Reinsurance, Zurich Insurance, Zurich Capital Markets, Zurich American Insurance, Universal Underwriters, Universal Underwriters of Texas, Steadfast Insurance, Rural Community Insurance, Fidelity & Deposit, Empire Indemnity Insurance, Empire Fire & Marine Insurance, Colonial American Casualty & Surety, American Zurich Insurance and American Guarantee & Liability Insurance.
S&P Global said it would consider lowering the rating if Zurich Insurance could not maintain its operating performance compared to others in its peer group, its capitalisation eroded over a sustained period or if there was a material change to the group’s business model.
S&P also upgraded Zurich Australian Insurance’s issuer credit and financial strength rating to AA from AA-.
The ratings agency also affirmed the A issuer credit and financial strength rating for Zurich American Life Insurance with a stable outlook.