Research Update: Swiss Re 'AA-' Ratings Affirmed Following Revised Capital Model Criteria; Outlook Remains Stable

On Nov. 15, 2023, we published our revised criteria for analyzing insurers' risk-based capital (see "Insurer Risk-Based Capital Adequacy--Methodology And Assumptions"). The revised criteria have improved Swiss Re Ltd.'s capital position, and we continue to assess the company's capital and earnings as very strong. We have affirmed our 'AA-' ratings on Swiss Re's core subsidiaries. The stable outlook reflects our view that, over the next two years, Swiss Re will maintain capital levels well above our 99.95% confidence level thanks to expected robust operating performance. On April 8, 2024, S&P Global Ratings affirmed its 'AA-' long-term financial strength and issuer credit ratings on Swiss Re's core subsidiaries. The outlook remains stable. Under our new capital model criteria, Swiss Re's total

...Key strengths Key risks A leading position in the property and casualty (P/C) and life reinsurance markets with a renowned brand. Exposure to natural catastrophe risks, bringing volatility to capital and earnings, in common with peers. Diversified product suite across P/C and life reinsurance that bolsters the competitive position. Casualty lines are exposed to potentially higher levels of inflation than currently expected. Expected to maintain an excess of capital above our 99.95% level over 2024-2025 under our risk-based capital model....

Research Update