OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best Co.has assigned a debt rating of “a+” to the recently
issued Euro 500 million 6.625% subordinated fixed to floating rate
callable loan notes, due 2042 (and callable in September 2022 as well as
on any semi-annual variable interest payment date thereafter) issued by Swiss
Reinsurance Company Ltd(Swiss Re) (Switzerland) on July 9, 2012.
The assigned outlook is stable.
As a result of this debt issuance, Swiss Re’s unadjusted financial
leverage is projected to be in the high teens and remains fully
supportive of its current rating level. Fixed charge coverage also is
expected to remain strong and in line with historical earnings
performance. Swiss Re intends to utilize the proceeds for general
The debt rating reflects Swiss Re’s leading global profile in the
reinsurance market, strong risk-adjusted capitalization and robust risk
management program. Somewhat offsetting these strengths is Swiss Re’s
exposure to catastrophic losses, which diminishes operating results in
The methodology used in determining these ratings is Best’s Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best’s rating process and contains the different rating criteria
employed in the rating process. Key criteria utilized include:
“Insurance Holding Company and Debt Ratings”; “Understanding BCAR for
Property/Casualty Insurers”; “Natural Catastrophe Stress Test”; “Risk
Management and the Rating Process for Insurance Companies”; and
“Understanding Universal BCAR.” Best’s Credit Rating Methodology can be
found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS
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Source: A.M. Best Co.