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

Business Wire

LONDON--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating (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), at the strongest level. In the second half of 2026, Zurich is expected to complete the acquisition of Beazley plc (Beazley) for a consideration of circa USD 11 billion. Once completed, AM Best expects Zurich’s risk-adjusted capitalisation to be maintained at a robust level, in part due to the USD 5 billion of capital that was raised to fund the transaction partially, in addition to the group’s strong organic capital generation. 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 benefits from its excellent financial flexibility as a regular participant in the capital markets, evidenced by a history of successful debt instrument issues. The group’s consolidated adjusted financial leverage as at year-end 2025, was 19.6%, as measured by AM Best, with no credit given for contractual service margin. Interest coverage at year-end 2025 was strong.

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 92.6% for 2025, 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 15% in 2025. 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 2025.

Zurich is one of the world’s largest insurance groups with a complete product offering across 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 anticipated acquisition of Beazley further enhances Zurich’s profile as a leading global commercial and specialty franchise.

The FSR of A+ (Superior) and the Long-Term ICRs of “aa” (Superior) have been affirmed with stable outlooks, 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.