AM Best Affirms Credit Ratings of Zurich Insurance Group Ltd and Its Main Rated Subsidiaries

LONDON--(BUSINESS WIRE)--
AM Best has affirmed the Financial Strength Ratings (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa” (Superior) of the main rated insurance subsidiaries of Zurich Insurance Group Ltd (Zurich) (Switzerland). At the same time, AM Best has affirmed the Long-Term ICR of “a+” (Excellent) of Zurich (a non-operating holding company). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Zurich’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, very favourable business profile and very strong enterprise risk management.

Zurich’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which is at the strongest level. This assessment considers Zurich’s consolidated financial leverage, which is expected to remain stable over the coming years, together with the group’s strong capital management capability, excellent financial flexibility and solid regulatory solvency position. Zurich reported a Swiss Solvency Test coverage ratio of 255% at the end of June 2025 (year-end 2024: 253%). AM Best’s assessment of Zurich’s risk-adjusted capitalisation benefits from the contribution of net economic value due to long term business and equity credit for hybrid debt, which are considered weaker elements of the group’s capital structure.

Zurich’s strong operating performance is supported by a highly diversified earnings profile by line of business and geography. This was illustrated by a robust net combined ratio of 94.2% for 2024, as calculated by the group. Earnings have been supported by good growth across protection and savings products, evidenced by growth in the life present value of new business premiums of 5% in 2024. Results are enhanced by the consistent fee-based income derived from Zurich’s non-claims management services for Farmers Exchanges (a leading insurance group operating in the United States), of USD 2.0 billion in 2024.

Zurich is one of the world’s largest insurance groups with a complete product offering across the life and non-life segments globally. The group maintains strong competitive positions in Europe and the United States, a strong presence in Latin America and selective positions in the Asia Pacific region.

The FSRs of A+ (Superior) and the Long-Term ICRs of “aa” (Superior) have been affirmed with a stable outlook, for the following subsidiaries of Zurich:

• The Fidelity and Deposit Company of Maryland
• Empire Fire and Marine Insurance Company
• Empire Indemnity Insurance Company
• Universal Underwriters Insurance Company
• American Guarantee and Liability Insurance Company
• Zurich American Insurance Company
• Rural Community Insurance Company
• American Zurich Insurance Company
• Universal Underwriters of Texas Insurance Company
• Steadfast Insurance Company
• Zurich American Insurance Company of Illinois
• Colonial American Casualty & Surety Company
• Zurich Insurance Company Limited
• Zurich American Life Insurance Company

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Ben Diaz-Clegg
Associate Director, Analytics

+44 20 7397 0293

[email protected]

Ghislain Le Cam, CFA, FRM

Senior Director, Analytics

+44 20 7397 0268

[email protected]

Christopher Sharkey
Associate Director, Public Relations

+1 908 882 2310

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Al Slavin
Senior Public Relations Specialist

+1 908 882 2318

[email protected]

Source: AM Best