A.M. Best Assigns Rating to Swiss Reinsurance Company Ltd’s Perpetual Subordinated Notes

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co.has assigned a debt rating of “a+” to the recently issued CHF 320 million 7.25% perpetual subordinated notes with a stock settlement issued by Swiss Reinsurance Company Ltd (Swiss Re) (Switzerland). The assigned outlook is stable.

The notes have no final maturity date, and Swiss Re may redeem the notes for stock in whole, but not in part, together with any accrued or unpaid interest on September 1, 2017. Thereafter Swiss Re may redeem the notes at each interest payment date or due to certain events as listed in the prospectus.

As a result of this debt issuance, Swiss Re’s unadjusted financial leverage is projected to be in the high teens and will remain fully supportive of its current rating level. Fixed charge coverage also is expected to remain strong and in line with the company’s historical earnings performance. Swiss Re intends to utilize the proceeds for general corporate purposes.

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 are Swiss Re’s exposure to catastrophic losses, which diminishes operating results in particular years.

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: “A.M. Best’s Ratings & the Treatment of Debt”; “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.

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A.M. Best Co.Peter Dickey, 908-439-2200, ext. 5053
Assistant Vice President
peter.dickey@ambest.com
orRobert DeRose, 908-439-2200, ext. 5453
Vice President
robert.derose@ambest.com
orRachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
orJim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

Source: A.M. Best Company, Inc.