A.M Best has affirmed the financial strength rating (FSR) and issuer credit rating of Swiss Re
The ratings agency confirmed the respective “A+” and “aa-“ ratings of the international business and its affiliates as the outlook for all ratings remains stable.
“The ratings reflect the Swiss Re
group’s (Swiss Re
) excellent consolidated risk-adjusted capitalisation, strong operating performance and superior business profile as a leading global reinsurer,” the rating agency said in a statement.
“The group has been able to return capital to investors in recent years due to strong internal capital generation. Excellent access to capital markets enhances the group’s financial flexibility.”
A.M Best paid particular attention to the underwriting track record of the business, praising its approach in several key areas.
“The group’s five-year underwriting track-record is strong, led by outperformance in its Property & Casualty Reinsurance segment. A strong result in this segment is expected for 2015, due in part to benign catastrophe experience,” the statement continued.
“The Life & Health Reinsurance segment is likely to meet its performance target of a return on equity of between 10% and 12% in 2015, following the completion of a number of corrective actions taken on underperforming U.S. portfolios.”
A.M Best is also predicting Swiss Re
to remain a global powerhouse, even in the face of a difficult market for reinsurers.
“Prospective performance is expected to remain robust, albeit weaker than in the recent past due to softer reinsurance pricing and assuming average catastrophe experience,” the statement said.
“The group’s superior business profile and strong relationships with reinsureds allow it to write private deals and contracts on differentiated terms, which improve profitability and offer protection against competition from alternative capital providers.”