On July 28, 2003, Standard&Poor's Ratings Services lowered its long-term counterparty credit and insurer financial strength ratings on Zurich-based global reinsurer Swiss Reinsurance Co. and related core subsidiaries of the Swiss Re group (Swiss Re) to 'AA' from 'AA+'. The outlook is stable. The downgrade primarily reflects a re-evaluation by Standard&Poor's of reinsurance industry risk and Swiss Re's position within that industry following the relative underperformance in its non-life underwriting profitability. The action also reflects the slower-than-expected recovery in Swiss Re's earnings and the impact this may have on the group's ability to fully replenish capital during the current hard phase of the cycle. Nevertheless, the ratings remain underpinned by Swiss Re's very strong business position,
