A.M. Best Places Reinsurance Operations of Zurich Financial Services Group Under Review With Developing Implications.Business & Insurance Editors OLDWICK, N.J.--(BUSINESS WIRE)--Mar. 27, 2001 A.M. Best Co. has placed the A+ (Superior) financial strength rating of Zurich Financial Services Zurich Financial Services Group is a major financial services group based in Zurich, Switzerland. Global operations North America The US consumer market is served primarily by Farmers Insurance Group the third largest personal lines property & casualty insurance Group's (Zurich) 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. operations under review with developing implications. This action follows the recent announcement by the company that following a strategic review, management has decided to exit the reinsurance business. Current plans are to spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. the reinsurance business and create an independent, publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. , operating on a worldwide basis. The new company is expected to rank among the top ten reinsurers worldwide in terms of premiums. The A+ (Superior) financial strength rating of Zurich Financial Services Group will remain unaffected by the exit from the reinsurance business. A.M. Best believes the exit will provide Zurich Financial Services Group with the opportunity to reduce volatility in operating results and to focus on the core businesses of asset management, life, personal and commercial insurance. The following Zurich reinsurance companies have been placed under review with developing implications by A.M. Best: -- Zurich Reinsurance North America Group -- Zurich Reinsurance North America Inc. -- Zurich Re (Cologne) The rating will remain under review pending discussions with management concerning details of the spin-off and the close of the transaction, which is expected to be completed by the fourth quarter of 2001. Zurich Financial Services Group and its affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. provide integrated risk and investment solutions to customers on a worldwide basis. Headquartered in Zurich, Switzerland Switzerland (swĭt`sərlənd), Fr. Suisse, Ger. Schweiz, Ital. Svizzera, officially Swiss Confederation, federal republic (2005 est. pop. 7,489,000), 15,941 sq mi (41,287 sq km), central Europe. the company maintains $23 billion in shareholders equity and $231 billion in consolidated assets as of December December: see month. 31, 2000. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion