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A.M. Best Revises Outlooks to Stable for Zurich Insurance Group Ltd and its Main Rated Subsidiaries

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A.M. Best Revises Outlooks to Stable for Zurich Insurance Group Ltd and its Main Rated Subsidiaries

A.M. Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "aa-" of the main non-life insurance subsidiaries of Zurich Insurance Group AG. Concurrently, A.M. Best has upgraded the FSR to A+ (Superior) from A (Excellent) and the Long-Term ICR to "aa-" from "a" for Zurich American Life Insurance Company (ZALICO) (Schaumburg, IL). The outlook of ZALICO's Credit Ratings (ratings) is stable. These companies are collectively referred to as Zurich group. (See below for a detailed list.) At the same time, A.M. Best has revised the outlook to stable from negative and affirmed the Long-Term ICR of "a" of the holding company, Zurich Insurance Group Ltd.

The Zurich group's ratings reflect its balance sheet strength, which A.M. Best categorises as very strong, its strong operating performance, very favorable business profile and appropriate enterprise risk management. The revised outlooks reflect the strong corrective actions management has taken on the group's property & casualty (P&C) operations, and A.M. Best's expectation that these actions will lead to sustained improvement in the P&C profitability ratios. The rating actions on ZALICO reflect its strategic importance and integration with the Zurich group.

Zurich group maintains a highly diversified business profile with sustained competitive advantages in Europe and the United States, strong presence in Latin America and selective positions in Asia Pacific. The group's balance sheet strength is derived from its strongest level of risk-adjusted capitalisation, excellent financial flexibility and liquidity. These are offset by Zurich's reliance on soft capital components to support its capital buffers, although the use of such components is consistent with the group's European peers.