Bulletin: Swiss Re's Capital Will Absorb Poor 2019 Earnings

LONDON (S&P Global Ratings) Feb. 20, 2020--S&P Global Ratings today said that even though Swiss Re performed materially below our expectation, we expect the group to maintain its risk-based capital above the 'AA' level, which supports the 'AA-' long-term ratings and stable outlook on its core operating entities. Unlike some of its peers, Swiss Re Group benefits from its capital buffer--which it has built up over time--above our requirement for 'AAA' level risk-based capital (measured using our model). From a regulatory perspective, we anticipate that the Swiss Re Group is likely to report a solvency ratio above its target of 220% (241% at midyear 2019). Today, Swiss Re reported much worse financial results for 2019 than we anticipated--net income of

...February 20, 2020 LONDON (S&P Global Ratings) Feb. 20, 2020--S&P Global Ratings today said that even though Swiss Re performed materially below our expectation, we expect the group to maintain its risk-based capital above the '##' level, which supports the '##-' long-term ratings and stable outlook on its core operating entities. Unlike some of its peers, Swiss Re Group benefits from its capital buffer--which it has built up over time--above our requirement for '###' level risk-based capital (measured using our model). From a regulatory perspective, we anticipate that the Swiss Re Group is likely to report a solvency ratio above its target of 220% (241% at midyear 2019). Today, Swiss Re reported much worse financial results for 2019 than we anticipated--net income of $727 million, compared with our forecast of nearly $2.5 billion as at August 2019. The company suffered higher-than-expected natural catastrophe losses, notably from Dorian, Faxai, Hagibis, and the Australian bushfires. In...

Bulletin