Switzerland-based Zurich Financial Services group's (ZFS') risk-based capital adequacy has improved in our opinion to a strong level supported by strong retained earnings and the recovery in the capital markets. We are affirming our 'AA-' long-term counterparty credit and insurer financial strength ratings on Zurich Insurance Company Ltd. (ZIC) and related core subsidiaries and revising the outlook to stable from negative. The stable outlook reflects our assessment that the wider Zurich Financial Services group will defend its very strong competitive position, continue to maintain very strong profitability, and generate retained earnings at a level that will sustain strong capital adequacy. On March 31, 2010, Standard&Poor's Ratings Services revised its outlooks on the various operating entities of Switzerland-based insurance
