Zurich Units Under Review

The “A+” financial strength rating (FSR) of Zurich Financial Services Group’s (Zurich) reinsurance operations were placed under review with developing complications by A.M. Best. Zurich recently announced that it will exit the reinsurance business, spinning it off to create an independent, publicly traded and globally operated company. The close of that transaction is expected to occur by the fourth quarter of this year. Companies affected by the rating action are Zurich Reinsurance North America Group; Zurich Reinsurance North America Inc. (ZRNA); and Zurich Ruckversicherung (Koln) AG (ZRK). However, Zurich’s “A+” FSR will remain unaffected.

S&P placed its “AA” counterparty credit rating and insurer FSR on ZRNA and ZRK on CreditWatch with negative implications.