AM Best upgrades Swiss Re’s rating outlook on back of hard market
AM Best has revised the outlook on Swiss Re’s ratings to stable from negative following a series of improved underwriting results driven by hard market conditions.
The rating agency said remedial action, including pruning its corporate solutions business, has restored the reinsurer’s performance. It also cited a revised appetite for general liability lines in the US and lower capacity levels for frequency and aggregate nat cat business.
AM Best affirmed Swiss Re’s financial strength rating at ‘A+’ and credit ratings of ‘aa’, both with a stable outlook.
Swiss Re reported net income of $1.4bn for the first half of 2023, up from $157m in the same period last year, with P&C reinsurance reporting a combined ratio of 94.7% and corporate solutions 91%. AM Best said Swiss Re’s balance sheet strength is at its strongest level of assessment.
“Underwriting performance is expected to remain robust, supported by favourable market conditions and effective cycle management,” AM Best said.
“The group’s strong brand and excellent geographic diversification partly insulate it from competition in the international reinsurance market and position it well to capitalise on improved reinsurance market conditions,” it added.
The change in outlook status follows S&P decision to upgrade Swiss Re’s ratings outlook to stable from negative in August.
