A.M. Best Comments on Swiss Re's 2006 Results.OLDWICK, N.J. -- A.M. Best Co. has commented that the ratings of Swiss Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. Company (Swiss Re Swiss Re is the world’s largest reinsurer, now that it has acquired GE Insurance Solutions (Ligi 2006). Founded in 1863, Swiss Re now operates in more than 30 countries. General Electric owns 8.9% of the firm. ) (Switzerland) and its rated subsidiaries remain unchanged following the publication of its 2006 consolidated results. Swiss Re reported a post-tax profit of CHF CHF In currencies, this is the abbreviation for the Swiss Franc. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 4.6 billion (USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 3.8 billion) for 2006. All three business segments (property/casualty, life/health and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. ) contributed to earnings, although property/casualty was the largest generator of profits. Swiss Re's significant improvement of the combined ratio for its traditional property/casualty business by 23.7 percentage points to 90.4% was influenced by a benign catastrophe season, but more significantly by overall attractive pricing conditions and a substantially better underwriting performance of Swiss Re's liability portfolio. In A.M. Best's view, Swiss Re's risk-adjusted capitalisation remains supportive of the current ratings despite the proposed CHF 3.4 (USD 2.79) dividend per share and the planned buy back of shares currently held by General Electric (GE). A.M. Best expects Swiss Re's risk-adjusted capitalisation to be maintained at a level commensurate with its ratings, factoring the proposed share buy back programme of up to CHF 4 billion (USD 3.3 billion) over the next three years. For Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com. |
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