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

AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “aa” (Superior) of Swiss Reinsurance Company Ltd (Switzerland) and most rated operating affiliates, all subsidiaries of Swiss Re Ltd (Swiss Re). At the same time, AM Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IRs) on the debt and the indicative Long-Term IRs on securities available under Swiss Reinsurance Company Ltd.’s debt issuance programme. The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the companies and ratings.)

Additionally, AM Best has maintained the under review with negative implications status for the FSR of A+ (Superior) and the Long-Term ICR of “aa” (Superior) of iptiQ Life S.A. (Luxembourg), as well as the FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent) of Lumico Life Insurance Company (Jefferson City, MO) and Elips Life Insurance Company (Jefferson City, MO). Concurrently, AM Best has withdrawn the ratings of iptiQ Life S.A., Lumico Life Insurance Company, and Elips Life Insurance Company as the companies have requested to no longer participate in AM Best’s interactive rating process.

The ratings reflect Swiss Re’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, very favourable business profile and very strong enterprise risk management.

Swiss Re’s balance sheet strength is underpinned by its consolidated risk-adjusted capitalisation that is comfortably in excess of AM Best’s minimum requirement for the strongest assessment level, as measured by Best’s Capital Adequacy Ratio (BCAR). The assessment considers the group’s conservative asset allocation, strong asset liability management capabilities and low dependence on retrocession coverage. In addition, Swiss Re’s financial flexibility is excellent, supported by effective capital management.

Swiss Re’s operating performance metrics, particularly in more recent years, have been supportive of a strong operating performance assessment. The group reported a strong net profit under IFRS of USD 2.1 billion in the first half of 2024 (compared with USD 1.8 billion in the restated prior year), reflecting the follow through of corrective underwriting actions taken in recent years, below budget natural catastrophe losses, and the solid performance of the L&H Reinsurance division. In this period, the group reported solid combined ratios of 88.7% (net-gross) for Corporate Solutions and 84.5% (net-net) for P&C Reinsurance, despite continued strengthening of its U.S. casualty reserves. Prospectively, underwriting performance is expected to remain robust, supported by favourable market conditions and effective cycle management.

Swiss Re maintains a leading position in the global reinsurance market. In AM Best’s view, the group’s strong brand and excellent geographic diversification partly insulate it from competition in the international reinsurance market and leave it well-positioned to navigate the underwriting cycle.

The FSR of A+ (Superior) and the Long-Term ICR of “aa” (Superior) have been affirmed with a stable outlook 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 Life & Health America Inc.
• Swiss Reinsurance America Corporation
• Westport Insurance Corporation
• Swiss Re Corporate Solutions America Insurance Corporation
• Swiss Re Corporate Solutions Premier Insurance Corporation
• Swiss Re Corporate Solutions Elite Insurance Corporation
• Swiss Re Corporate Solutions Capacity Insurance Corporation

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

The following indicative Long-Term Issue Credit Ratings (Long-Term IRs) on securities available under Swiss Reinsurance Company Ltd’s USD 10 billion debt issuance programme have been affirmed with a stable outlook:

Swiss Reinsurance Company Ltd—

-- “aa-” (Superior) on all senior unsecured notes to be issued under the programme

-- “a+” (Excellent) on all senior subordinated notes to be issued under the programme

-- “a” (Excellent) on all junior subordinated notes to be issued under the programme

The following Long-Term IR has been affirmed with a stable outlook:

Swiss Re Treasury (US) Corporation (guaranteed by Swiss Reinsurance Company Ltd)—

-- “aa-” (Superior) on USD 500 million 4.25% senior unsecured notes, due 2042

The following Long-Term IRs have been affirmed with a stable outlook:

Swiss Re America Holding Corporation—

-- “a” (Excellent) on USD 600 million 7.00% senior unsecured notes, due 2026

-- “a” (Excellent) on USD 350 million 7.75% senior unsecured notes, due 2030

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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