Zurich Re -- London --'s 'A-' Rtg on S&PWatch Dev From Neg.LONDON--(BUSINESS WIRE)--Standard & Poor's CreditWire 10/16/98-- Standard & Poor's today revised its CreditWatch implications to developing from negative on its single-'A'-minus counterparty credit and financial strength ratings on 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. (London) Ltd. (ZRL ZRL Zurich Research Laboratory ZRL Zero Risk Level ). This implies that the rating may be raised, lowered, or affirmed. This development follows discussions between Standard & Poor's and 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 over the future role of ZRL within the group. Following the termination of discussions between ZRL management and Zurich Financial Services Group over a potential management buyout Management buyout (MBO) Leveraged buyout whereby the acquiring group is led by the firm's management. management buyout See going private. , the company will be restructured extensively and renamed Zurich Specialties (London) Ltd. (ZSL ZSL Zoological Society of London (UK) ZSL Zero Slot LAN ZSL Zylog Systems Limited (Edison, New Jersey) ). The developing action reflects the fact that ZSL in future, will play an active role within the Zurich Financial Services Group, focusing exclusively on direct specialty lines, principally in U.S. excess and surplus lines, written in the London market. Zurich Reinsurance Group entities based in Zurich, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , and Cologne, will offer renewal terms to existing reinsurance clients of ZRL. Standard & Poor's expects capital at ZSL to be reduced in absolute terms, but to remain strong relative to the prospective portfolio of business. Furthermore, Standard & Poor's expects to resolve the CreditWatch action before the end of the year, after discussions with the new ZSL management team, Standard & Poor's said.--CreditWire. |
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