Fitch Ratings has affirmed Zurich Insurance Company’s (ZIC) Insurer Financial Strength rating at ‘A+’ and Long-term Issuer Default Rating at ‘A’. The Outlook is Stable. ZIC is the core part of the Zurich Financial Services group.
The rating was based on a solid capital position of the parent company over the first nine months of 2011. Another factor in the decision was the groups continued strong earnings despite high natural catastrophe losses.
Fitch said that the group is in a good position to manage peripheral eurozone bonds without too much damage to their investment portfolio.
Some offsetting factors outlined by the company included a relatively high amount of goodwill intangibles, and the headwinds the company faces due to the difficult economy, competitive market conditions and challenging capital markets.
Fitch said the main factor that could result in a ratings upgrade for the group would be if they maintain their current capital position and continue their strong operating eranings.
There were a lot more downgrade drivers listed, including capital drops, a fall in the quality of underwriting and any acquisitions that are out of the groups “area of expertise”.
