FRANKFURT (S&P Global Ratings) June 24, 2022--S&P Global Ratings said today that the announcement by Swiss insurance group Zurich Insurance Co. Ltd. (ZIC; AA/Stable/A-1+) that it has entered into a definitive agreement to sell its German traditional guaranteed life insurance back book to Viridium Holding AG (not rated) is in line with ZIC's long-term strategy of focusing on capital-light life insurance products. In our view, the disposal continues ZIC's strategy of preserving low earnings volatility by limiting its exposure to interest rate risk. Furthermore, the disposal reconfirms ZIC's commitment to maintain a robust balance sheet and strong earnings. That said, we also consider that the disposal will help ZIC improve its capital allocation across the group. The disposal, which is
