Bulletin: Swiss Re's Capital Buffer Takes A Slight Hit From COVID-19

LONDON (S&P Global Ratings) Feb. 19, 2021--S&P Global Ratings today said that Swiss Re's capital buffer at the 'AA' level was slightly hit following the $3.9 billion in pandemic-related loss reserves. Swiss Re Ltd.'s (core operating entities rated AA-/Negative/A-1+) earnings are materially below our expectations; it reported a net loss of $878 million for 2020. Overall, we still forecast that the group's risk-based capital will support its ratings at the 'AA' level in 2021-2022, bearing in mind the group's commitment to manage its capital at least at the 'AA' level. If the group fails to improve its underwriting performance over the long term, and consequently its earnings, our view of the group's excellent competitive position could be influenced. In addition,

...LONDON (S&P Global Ratings) Feb. 19, 2021--S&P Global Ratings today said that Swiss Re's capital buffer at the '##' level was slightly hit following the $3.9 billion in pandemic-related loss reserves. Swiss Re Ltd.'s (core operating entities rated ##-/Negative/A-1+) earnings are materially below our expectations; it reported a net loss of $878 million for 2020. Overall, we still forecast that the group's risk-based capital will support its ratings at the '##' level in 2021-2022, bearing in mind the group's commitment to manage its capital at least at the '##' level. If the group fails to improve its underwriting performance over the long term, and consequently its earnings, our view of the group's excellent competitive position could be influenced. In addition, the group may not be able to sustain its risk-based capital at the '##' level over the long term. The negative outlook on the group's core entities continues to reflect uncertainty about its future performance. The group reported...

Bulletin